Macquarie Group Ltd (ASX: MQG) shares have retreated 3.2% today to $79.93, with the stock now trading ex-dividend.
When Macquarie Group delivered its earnings results recently, it said that its full-year profit had risen a remarkable 27% compared to the 2014 financial year, while its profit for the second half had lifted 37%.
As a result, it increased its full-year dividend by 26.9% to $3.30 per share, up from $2.60 per share in 2014. That includes a final dividend worth $2.00 (40% franked), which investors entitled to the distribution will receive on 2 July, 2015.
Should you buy?
While the profits of each of Australia's Big Four banks, including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) are expected to come under significant pressure in the coming years, analysts expect Macquarie Bank's impressive run to continue.
Indeed, while it is Australia's largest investment bank, it also generates a significant portion of its earnings overseas so it is not expected to face the same headwinds as its larger rivals. Although Macquarie Bank seems like a reasonable investment today; it isn't necessarily the best option for investors looking for a reliable source of dividend income.