A new, original strategy could help you increase your immediate income and accelerate the wealth-building process. Collect dividends that yield 12.9% every 21 days. The strategy is simple — no options, no leverage, no day trading. Anyone can use it.
If you think you can do it better than the other guy, then you get in the game and do it.
Ken Moelis thought he could do investment banking better than the other guy. So, he set out to prove it in 2008.
Moelis formed Moelis & Co. (NYSE: MC), a boutique investment bank, in 2008. The timing was hardly ideal. The financial crisis was in full fury.
Venerated firms Bear Stearns and Lehman Brothers were dropped for the count. Goldman Sachs (NYSE: GS) and Merrill Lynch were helped to their feet by government intervention, with the use of your money and your ability to bear risk, of course.
As for Moelis, he has proved he can do it better.
From 2008 to 2011, Moelis added 400 investment bankers and established a global banking platform. Today, Moelis has 17 offices backed by 650 employees to serve North and South America, Europe, the Middle East, Asia, and Australia.
Ken Moelis then took his company public in April 2014. Nothing has changed. Moelis & Co. continues to grow. Revenue grows at a 10.5% average annual rate. Earnings have more than kept pace. They’ve doubled over the past three years.
Moelis’ reputation and business acumen has enabled his company to compile a stable of blue-chip clientele: Dell (NASDAQ: DELL), Oracle (NASDAQ: ORCL), Petrobras (NYSE: PBR), Berkshire Hathaway (NYSE: BRK.b), and Heineken (OTC: HINKY).
Moelis & Co. shocked the competition earlier this year. The company is advising $2 trillion Saudi Aramco — the Saudi Arabia state oil company — on its impending 2018 IPO. The Saudi deal will generate millions of dollars of additional revenue for Moelis.
Moelis & Co. is more than growth. It’s about serving shareholder interest as well.
Management is committed to returning 100% of excess capital — excess cash — to shareholders. Moelis & Co. generates a lot of it. Over the past 12 months, Moelis & Co. generated $10.44 in free cash flow per share.
And management has kept its commitment.
Moelis & Co. has paid a quarterly dividend since the get-go. The dividend has increased at a 22.8% average annual rate.
The Moelis Special Dividend
Most financial websites tell you that the Moelis & Co. dividend yields 3.9%. Technically, they’re right. That is, they’re right if yield is calculated on the regular dividend. Moelis & Co. supplements its dividend annually with special dividends.
The most recent special dividend — a dollar per share — was paid in July. Factor in the special dividend, and the real dividend yield approaches 6.5%.
Past special dividends were of similar magnitude — a dollar-or-so per share. Moelis has paid $6.55 per share in dividends in its brief history as a publicly traded company.
Moelis & Co. is an ascending dividend grower. But the special dividends are what set it at a higher plane. Half of all dividends paid have been special dividends.
Finding the Right Special Dividends
The Moelis special dividends are more special than most investors realize. They have not only generated more income, they set the stage for share-price appreciation.
The right special dividends, like those at Moelis, keep return on invested capital high. They remove excess cash, a drag on returns. High returns on invested capital ensure earnings grow unabated.
The “right” special dividends are the exception, not the rule. The right special dividends offer income — bigger than Moelis & Co. — that leads to future share-price appreciation.
We know where to find the right special dividends. Here’s your opportunity to find them, too.
Ian Wyatt and I will host a free live webinar this week. During this event, you’ll learn how to invest in the best special dividends for income and profit. You have nothing to lose except the opportunity to invest in dividend stocks as you never have before. Click here to attend.