This dividend stock has crushed the ASX 200 index in the past 12 months

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The Platinum Asset Management Limited (ASX:PTM) share price is 3 cents lower today at $6.12, trading around the midpoint of its 52 week range.

Platinum Asset Management shares are now up almost 32 per cent over the past 12 months, soundly out-performing the return of the ASX 200, the benchmark index gaining 5.5 per cent in the past year.

It’s when you zoom out a little further that you can put the performance of Platinum Asset Management shares into perspective.

Over the past 5 years,Platinum Asset Management shares have gained around 10 per cent in total. That compares to a total gain in the S&P/ASX 200 Index of almost 29 per cent over the same period.

Source: The Capital Club

Platinum Asset Management is an Australian based fund manager which specialises in investing in international equities.

Last month Platinum Asset shares jumped almost 8 per cent higher as investors welcomed the group’s return to a net inflow position in April.

Platinum reported that funds under management (FUM) increased to $28 billion in April, a 2.6 per cent increase from the March level of $27.3 billion, and the group’s highest FUM level since October 2015.

At the time, broker Ord Minnett upgraded the Platinum shares two notches to “Buy” from “Sell,” placing a share price target of $6.50 on the company.

Platinum pays a strong fully franked dividend

Over the past 12 months, Platinum has paid a total of 31 cents dividends per share.

At a share price of $6.12, this means Platinum Asset shares trade on a fully dividend yield of 5.1 per cent.

The dividend yield compares favourably with fellow asset manager Magellan Financial Group Ltd (ASX:MFG). With Magellan Financial shares trading at $23.64, they trade on a fully franked dividend yield of 3.9 per cent.

In February, Platinum Asset Management said its business is well placed, with a strong position in the Australian retail market. It said the desire for higher foreign equity exposure continues to increase in Australia, and new offshore initiatives provide a platform for growth over the medium term. 

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au