In Tuesday’s trading, the market saw a mix of new 52-week highs and lows, with 77 NYSE stocks hitting new highs compared to 22 hitting new lows. On Nasdaq, the new lows outnumbered the highs, with 135 to 104.
One of the companies that hit a new 52-week low on the NYSE was Diamond Hill Investment Group (DHIL), a Columbus-based investment manager with assets under management and advisement (AUMA) of $32.4 billion as of Sept. 30.
Diamond Hill came on my radar through Harvest Exchange, a platform for investment firms to share their insights. Despite managing a significant amount of assets, $32.4 billion is relatively small compared to larger firms like Artisan Partners Asset Management, which had AUM of $183 billion as of Oct. 31.
The main challenge for Diamond Hill is growing its AUM in a competitive landscape. On Tuesday, DHIL stock hit a new 52-week low of $114.48, marking its 30th new low in the past year. The stock hasn’t been at such levels since November 2013, except for a low of $75 in March 2020.
Despite the recent lows, I see an opportunity in Diamond Hill stock. The company announced a $4-a-share special dividend alongside its Q3 2025 results on Oct. 30, which caught my attention. Special dividends are a good way for companies to allocate capital and show their commitment to shareholders.
In addition to the special dividend, Diamond Hill pays a fixed quarterly dividend of $1.50 per share, totaling $6 annually. Over the past five years, the company has paid out significant dividends, with an average annual total payout of $11 per share.
Diamond Hill has seen its stock price decline over the past year, but its shareholder yield has been impressive. In 2022, the company had a shareholder yield of 13.1%, thanks to dividends and share repurchases.
While the stock has underperformed compared to the S&P 500 ETF, Diamond Hill has shown steady revenue growth over the years. The company has been diversifying into fixed-income assets, which have been gaining traction.
Although Diamond Hill’s profits have been under pressure, the margins have stabilized. The company recently converted one of its mutual funds into an ETF, showing its adaptability to market trends.
In conclusion, Diamond Hill may be out of favor with investors, but I see potential for a turnaround. With a strong dividend track record and a focus on growth areas like fixed income, the company could be a hidden gem for aggressive investors.
