No signs of slowing in the dividend space.
Charles Schwab Corp. announced on Monday it will acquire dividend-focused money manager ThomasPartners. The deal includes an upfront payment of $85 million in cash and the opportunity for additional payments depending on future growth in ThomasPartners' assets under management, according to Schwab. The deal is expected to close during the fourth quarter.
ThomasPartners, based in Wellesley, Mass., has $2.3 billion in AUM as of Sept. 30, "in largely growth-oriented investment portfolios designed to generate dividend income streams." It claims to have outperformed its benchmarks over the nine-year history since the introduction of its dividend product.
"There is a growing interest among investors and investment advisors in the growth-oriented dividend income approach that is ThomasPartners' core focus and expertise," Walt Bettinger, Schwab's president and CEO, said in statement. "With more than 4 million baby boomers entering retirement age each year in the United States, and tens of millions approaching that milestone over the coming decade, a rapidly growing segment of investors and investment advisors are focusing on producing income within their investment portfolios."
Post-closing plans include:
