Schroders’ Shares (SDR) Make New 52 Week Low, Currently Holding 300 Level

Schroders' share price (LON: SDR) continues to slump today, down 1.89% at the time of writing, and making new lows at 300.60.

The stock, a well-established entity within the FTSE 100, has seen a significant downturn of almost 30% on a YTD basis, and has now reached levels not observed in the last decade.

Taking a look at the 1 year chart below, the psychologically important 300p level has held firm today, yet the bearish trend since the beginning of 2024 is clear to see.

These figures come at a time when income investors are closely monitoring yield disparities, with Schroders presenting a particularly compelling case. Currently, the company offers a trailing yield of 6.99%, a figure which towers over the average FTSE 100 yield of approximately 3.5%. This yield has been sustained in part due to Schroders' impressive history of dividend reliability, which includes not slashing shareholder payouts for over three decades. In fact, since 2004, the company has not only maintained but also increased its dividends, averaging annual hikes of 9.8%.

The financial world does not stand still, however, and neither has Schroders' assets under management. The company faced setbacks in the third quarter, reporting outflows of £2.3 billion. This was preceded by potent performance earlier in the year but was tempered by increased market volatility, especially within the Chinese markets, leading to a downward trend.

From a valuation standpoint, Schroders trades at 12.50 times earnings, sitting below the FTSE 100 average .

Facing these financial headwinds, Richard Oldfield, CFO of Schroders, has emphasized the need for greater commercial discipline. To navigate the challenges ahead, the company is seeking to enhance efficiency through the simplification of its operations and seamless execution.

These are undoubtedly complicated times for the firm, but with a steadfast dividend history and potential for share price recovery, Schroders may yet emerge an attractive proposition for long-term income investors. The future will reveal whether these latest figures represent a brief downturn or signal a longer-term trend for the investment management stalwart.