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  5. FSZ: Good Morning, I see this morning they had a bit of a dividend increase, is this the best use of capital for them at this point? [Fiera Capital Corporation Class A Subordinate Voting Shares]
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Q: Good Morning,
I see this morning they had a bit of a dividend increase, is this the best use of capital for them at this point? The yield is already sitting at just under 8% ? Maybe pay down some debt or buy back some shares if they are so cheap? The higher yield is nice but doesn't really seem to attract new shareholders or move the needle for them.
thanks

Asked by Chris on November 11, 2021
5i Research Answer:

Yes, the increased dividend doesn't really seem to be necessary, in our view. A buyback might work better. The company is likely frustrated, as it is doing OK, but its valuation mutliple remains in the doldrums.