Korn Ferry's Dividend Surge: A 30% Boost to $0.48

In the ever-evolving landscape of dividend-paying stocks, Korn Ferry (NYSE:KFY) has just made a bold move that's sure to catch the eye of income-focused investors. The company has announced a 30% increase in its quarterly cash dividend to $0.48 per share, payable on April 15, 2025. This marks the fifth consecutive year that Korn Ferry has increased its regular quarterly cash dividend, demonstrating a strong commitment to returning value to its shareholders.



This dividend increase is not just a one-off event; it's part of a broader trend of consistent growth. Since 2015, Korn Ferry's dividend has grown from $0.40 total annually to $1.48, representing a compound annual growth rate (CAGR) of approximately 14% a year. This steady increase in dividends, coupled with the recent 30% boost, positions Korn Ferry as a reliable income source for investors.

But how does this dividend increase stack up against Korn Ferry's peers in the consulting industry? Let's take a closer look at the numbers. Korn Ferry's new dividend yield of 2.85% is significantly higher than the Industrials sector average of 1.58%. This makes Korn Ferry an attractive option for income-seeking investors who are looking for a steady stream of cash flow.



Comparatively, Korn Ferry's peers in the consulting industry have different dividend payouts and yields. For example, ManpowerGroup Inc (MAN) has a dividend yield of 5.11% with a dividend per share (DPS) of $3.08 and a payout ratio of 101.3%. Insperity Inc (NSP) has a dividend yield of 2.7% with a DPS of $2.4 and a payout ratio of 98.4%. Kelly Services Inc (KELYA) has a dividend yield of 2.26% with a DPS of $0.3, but its payout ratio is not available. Heidrick & Struggles International Inc (HSII) has a dividend yield of 1.4% with a DPS of $0.6 and a payout ratio of 139.5%. Barrett Business Services Inc (BBSI) has a dividend yield of 0.79% with a DPS of $0.32 and a payout ratio of 15.5%. Tradeweb Markets Inc (TW) has a dividend yield of 0.31% with a DPS of $0.42 and a payout ratio of 17.9%.

Korn Ferry's dividend yield of 2.85% is higher than most of its peers, except for ManpowerGroup Inc, which has a significantly higher yield of 5.11%. This positions Korn Ferry favorably in terms of dividend attractiveness. The increase in dividend also reflects Korn Ferry's confidence in its business and financial health, as stated by Gary D. Burnison, CEO of Korn Ferry: "This marks the fifth consecutive year that we have increased our regular quarterly cash dividend and demonstrates the continued confidence we have in our business."

The implications of this dividend increase for investor confidence and stock performance are positive. A consistent and growing dividend is often seen as a sign of financial stability and a commitment to shareholder value. This can attract income-focused investors and potentially drive up the stock price as demand for the stock increases. Additionally, the dividend increase aligns with Korn Ferry's historical trend of strong dividend growth. Since 2015, the dividend has grown from $0.40 total annually to $1.48, representing a compound annual growth rate (CAGR) of approximately 14% a year. This consistent growth in dividends, coupled with the recent 30% increase, can enhance investor confidence in the company's long-term prospects and sustainability.

In summary, Korn Ferry's 30% increase in its quarterly cash dividend to $0.48 per share is a significant move that positions the company favorably compared to its peers. This increase reflects the company's confidence in its financial health and commitment to shareholder value, which can boost investor confidence and potentially drive up stock performance.