Is Raymond James' Capital Distribution Policy Sustainable?

Raymond James Financial RJF has an efficient capital distribution strategy, which focuses on dividend increases and share repurchases, while maintaining financial flexibility for organic and inorganic growth. The company has consistently increased its dividend over the past decade, with the latest hike of 11.1% announced in December 2024. RJF has a 5-year annualized dividend growth rate of 18.1%. It has a payout ratio of 19% and its dividend yield is currently 1.14%.

Also, Raymond James has a share buyback plan in place. In late 2024, the company authorized a repurchase plan worth up to $1.5 billion. As of June 30, 2025, $749 million remained available under the authorization.

Alongside paying out dividends and repurchasing shares, RJF has been engaging in opportunistic acquisitions, which have been aiding its top line. The company has a robust balance sheet and liquidity position, which supports its inorganic growth initiatives. As of June 30, 2025, RJF had $2.89 billion in senior notes payable and other borrowings. Its cash and cash equivalents balance was $9.20 billion as of the same date.

Raymond James’ long-term issuer and senior unsecured debt ratings of A- from Fitch and Standard & Poor’s, respectively, and A3 from Moody’s, along with a stable outlook from all three rating agencies, allow it easy access to the debt markets. This means that the company will be able to meet near-term debt obligations, even if the economic situation worsens.

Thus, given a robust capital and liquidity position, RJF is expected to sustain efficient capital distribution activities in the future, thereby continuing to boost shareholder confidence in the stock.

How is RJF Placed in Capital Returns Compared With Peers?

Like RJF, two of its peers, Morgan Stanley MS and Evercore’s EVR capital distribution plans also seem impressive.

Morgan Stanley cleared the 2025 stress test remarkably and announced an 8% hike in the quarterly dividend to $1.00 per share. It also reauthorized a multi-year share repurchase program of up to $20 billion (no expiration date).

MS has increased its dividend five times in the last five years, with an annualized growth rate of 22.8%. Morgan Stanley is expected to continue with efficient capital distribution activities, given its solid liquidity position and earnings strength.

Similarly, Evercore remains committed to enhancing shareholders’ value, as seen from the company’s involvement in steady capital-distribution activities. In April 2025, EVR hiked its dividend 5% to 84 cents per share. In the last six years (ended 2024), the annual dividend per share has witnessed a compound annual growth rate of 10.4%.

In February 2022, Evercore was authorized with a share repurchase program worth $1.4 billion, with no expiration date. In April 2025, the board of directors authorized a share-repurchase program worth $1.6 billion. As of June 30, 2025, the company had $2.6 billion worth of shares available. Evercore’s solid balance sheet and strong liquidity position indicate that its capital distribution activities are sustainable.

RJF’s Price Performance & Zacks Rank

Shares of Raymond James have gained 13.1% so far this year, underperforming the industry’s growth of 30.6%.

Currently, RJF carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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