Waddell & Reed Raises Dividend 27%

Waddell & Reed Financial said on Thursday that it will raise its quarterly dividend by 26.5% to 43 cents a share, payable on Feb. 2, 2015 to shareholders of record as of Jan. 12. On an annual basis, the new dividend implies a yield of 3.8% on the stock, based on Wednesday's closing price of $45.22. "We remain committed to returning excess capital to our shareholders, and are able to execute upon that commitment through the substantial strength of our balance sheet," said Chief Executive Henry Herrmann. The mutual fund company's stock, which was still inactive in premarket trade, has fallen 31% this year through Wednesday, compared with an 11% rise in the SPDR Financial Select Sector ETF and an 8.9% gain in the S&P 500.