Magellan Financial Group Ltd (ASX: MFG) just reported its January 2021 funds under management (FUM). Is it the best ASX dividend share?
What happened with Magellan?
Magellan announced its FUM ending on 29 January 2021.
It said that total FUM dropped by around $1 billion over a month to $100.4 billion. The global equities strategy saw a slight increase of FUM to $75.1 billion and the Australian shares strategy saw a tiny increase to $8 billion of FUM.
It was the infrastructure strategy that suffered the $1 billion decline, down to $17.28 billion.
The FUM decline was despite Magellan experiencing net inflows of $223 million over the month, including net retail inflows of $85 million and net institutional inflows of $137 million.
Is it the best ASX dividend share?
Well, that’s a big claim. There are lot of different contenders on the ASX for the title.
Fortescue Metals Group Limited (ASX: FMG) has a very big dividend – including franking credits and the upcoming HY21 dividend, the dividend yield is probably above 10% right now.
Magellan’s yield isn’t that high, including franking credits the trailing yield is ‘only’ around 6%.
In terms of dividend growth rates, there have been some retail shares that have seen enormous growth of the dividends, like JB Hi-Fi Limited (ASX: JBH) and Nick Scali Limited (ASX: NCK).
Magellan’s total dividends were up 16% in FY20, with the final dividend up 10%.
The ASX dividend share with the longest dividend growth streak is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which has increased for 20 years in a row.
Magellan’s ordinary dividend (before performance fee dividends) has been steadily growing, but it’s not as good as a record.
However, when you put all of the different factors together, I think Magellan is actually a very compelling dividend idea right now. Whilst many other dividend shares have been getting more expensive, the Magellan share price has dropped around 20% over the last three months. I like the new investments the company is making too.
As well as Magellan, I suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.
