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Wealth adviser Hennessy Funds of Marin County declares dividend despite lower Q3 revenue

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The board of directors of Hennessy Advisors Inc. (Nasdaq: HNNA) declared a quarterly dividend of 13.75 cents per share, even as the company has reported lower revenue.

The Novato-based publicly traded investment manager said it will pay it Dec. 3 to shareholders of record as of Nov. 12. The company has paid a dividend since 2005, according to the announcement. Hennessy offers a broad range of domestic equity, multiasset, and sector and specialty mutual funds.

In a statement, the company said the quarterly dividend equates to an annualized dividend of 55 cents a share, or a yield to 4.9% based on a closing stock price of $11.18 on Oct. 29.

The Business Journal previous reported the company posted third-quarter results that showed a decrease in total revenue and assets under management, compared with the same period last year. For the three months ended June 30, total revenue decreased 23% to $10.4 million from a year before.

Total assets under management decreased 22% to $5.0 billion over the same period.

During an interview in August, Chairman and President Neil J. Hennessy attributed the declines to a strong overall market, resulting in investors' moving capital away from actively managed funds like his.

“Over the last year and a half to two years especially, there’s been movement from actively managed funds to passive funds which are essentially index funds with very, very, low fees, in some cases zero,” Hennessy said at the time.

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