Houlihan Lokey Raises Quarterly Dividend 16.7% to $0.70

Houlihan Lokey raised its quarterly cash dividend 16.7% to $0.70 a share from $0.60. The shares traded ex-dividend on June 1, 2026, and the higher rate was maintained for the September 1, 2026 ex-dividend date.

Why the dividend changed

The board paired the increase with a record fiscal year. Houlihan Lokey reported fiscal 2026 revenue of $2.62 billion, up from $2.39 billion in fiscal 2025. Net income rose to $426 million from $400 million, while diluted earnings per share increased to $6.22 from $5.82. Those full-year gains supplied the operating backdrop for a larger distribution. Houlihan Lokey fiscal 2026 results

The fourth quarter was less uniform. Revenue fell to $636 million from $666 million, and net income declined to $100 million from $122 million. Corporate Finance revenue increased 5%, but Financial Restructuring revenue fell 33%, reflecting fewer completed transactions and lower average fees. The increase therefore followed the strength of the full fiscal year rather than a broad acceleration in the final quarter. Houlihan Lokey fiscal 2026 results

Chief Financial Officer Lindsey Alley described dividend increases as “a measure of our continued growth and our outlook for the next year.” Management said acquisitions remained the first capital-allocation priority, followed by repurchases, while retaining balance-sheet flexibility. The company ended fiscal 2026 with $1.36 billion of unrestricted cash, cash equivalents and investment securities and repurchased 301 thousand shares during the fourth quarter. Houlihan Lokey earnings-call transcript

Dividend track record

The latest increase extends Houlihan Lokey’s dividend-growth streak to 10 consecutive years. Its five-year dividend growth rate is 13.4% annual growth, although the annual record shows that the pace has varied materially.

Annual payments rose from $1.28 a share in 2020 to $1.62 in 2021, an increase of 26.6%. They advanced to $2.02 in 2022, up 24.7%, before growth moderated to 7.9% in 2023, 3.7% in 2024 and 4.9% in 2025. The 2025 total was $2.37 a share.

The quarterly history shows step increases rather than uneven payments. Houlihan Lokey paid $0.57 on the December 2, 2024 and March 3, 2025 ex-dividend dates, followed by four payments of $0.60 through March 2, 2026. The rate then moved to $0.70 for the June 1, 2026 and September 1, 2026 ex-dividend dates. That pattern supports a forward annual dividend of $2.80 a share.

Is the dividend covered?

The dividend consumes 42% of earnings. That payout ratio leaves most reported earnings outside the distribution, providing room for compensation costs, acquisitions, share repurchases and other corporate uses.

SmarterDividends rates the dividend A, with a safety score of 88. An A denotes a very safe dividend within the score range of 80-100. The grade reflects the moderate earnings payout and the established record of annual increases. It does not eliminate exposure to the transaction cycles that affect an investment bank’s revenue and profit.

Yield and valuation

Houlihan Lokey’s forward yield is 2.15%, compared with a Financial Services sector median forward yield of 5.70%. The stock therefore offers less current dividend income than the median company in its sector, even after the increase.

At a share price of $127.00, SmarterDividends’ fair-value estimate is $96.34. The valuation verdict is overvalued, with 26% downside to fair value. The combination of a below-median yield and that valuation assessment separates dividend safety from the price investors are paying for the income stream.

What to watch

Houlihan Lokey subsequently reported first-quarter fiscal 2027 revenue of $511 million, down from $605 million, and diluted earnings per share of $1.15, down from $1.42. The board maintained the $0.70 quarterly dividend. Future results will show how transaction timing, restructuring activity and acquisition spending affect the earnings available for capital returns. Houlihan Lokey first-quarter fiscal 2027 results

The company also agreed to acquire Intrepid Financial Partners, an energy-focused investment bank. The transaction was expected to close before September 30, 2026, subject to regulatory approval, and would expand Houlihan Lokey’s oil and gas advisory coverage. Completion and integration are concrete items to monitor because management has placed acquisitions ahead of repurchases in its capital-allocation order while continuing the quarterly dividend. Houlihan Lokey Intrepid acquisition announcement