Covered, compounding — a broker toll road. A 2.01% yield on a $0.99 quarterly dividend, raised in July 2026 from $0.90, is covered about twice over: a 47.4% trailing payout and roughly a third of free cash flow. Fee-driven brokerage and consulting revenue, with more than 15 consecutive years of increases, is the compounding engine here — the yield is modest, the coverage is not.
Key risk: Consulting and brokerage demand is cyclical — a corporate-spending downturn slows the organic growth the raise streak depends on.
Changes if: The payout pushes past ~60% of earnings, or the annual raise stops.
- ✓Payout-coverage check: 47.4% trailing payout, about a third of free cash flow — covered with room to spare.
- ✓Yield check: 2.01% indicated — $0.99/qtr × 4 at the $197.48 close on Oct. 23, 2026. Earned fee income, not a special.
- ✓Dividend growth check: Raised July 2026 from $0.90 to $0.99; more than 15 consecutive years of increases.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.