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                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   ----------

                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

         Date of Report (Date of earliest event reported): July 26, 2005

                          WESTWOOD HOLDINGS GROUP, INC.
               (Exact name of registrant as specified in charter)

                Delaware               001-31234          75-2969997
      (State or other jurisdiction    (Commission       (IRS Employer
           of incorporation)          File Number)    Identification No.)

                         200 Crescent Court, Suite 1200
                               Dallas, Texas 75201
                    (Address of principal executive offices)

                                 (214) 756-6900
              (Registrant's telephone number, including area code)

     Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]   Written communications pursuant to Rule 425 under the Securities
      Act (17 CFR 230.425)

[ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange
      Act (17 CFR 240.14a-12)

[ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

[ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))

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ITEM 2.02: RESULTS OF OPERATIONS AND FINANCIAL CONDITION In accordance with Securities and Exchange Commission Release No. 34-47583, the following information, which is being furnished pursuant to the requirements of Item 2.02, "Results of Operations and Financial Condition," is being reported under Item 7.01, "Regulation FD Disclosure." On July 26, 2005, Westwood Holdings Group, Inc. issued a press release entitled "Westwood Holdings Group, Inc. Announces 12.5% Increase in Quarterly Dividend, a Special Cash Dividend of $0.75 per Share and Second Quarter 2005 Results," a copy of which is furnished with this Current Report on Form 8-K as Exhibit 99.1. The information in this Current Report on Form 8-K shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing of the Company under the Securities Act of 1933, as amended. ITEM 7.01: REGULATION FD DISCLOSURE Westwood announced today that its Board of Directors has approved the payment of a quarterly cash dividend of $0.09 per common share and a special dividend of $0.75 per common share, payable on October 3, 2005 to stockholders of record on September 15, 2005. ITEM 9.01: FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits: The following exhibit is furnished with this report: Exhibit Number Description - -------------- -------------------------------------------------------------- 99.1 Press Release dated July 26, 2005, entitled "Westwood Holdings Group, Inc. Announces 12.5% Increase in Quarterly Dividend, a Special Cash Dividend of $0.75 per Share and Second Quarter 2005 Results"

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 26, 2005 WESTWOOD HOLDINGS GROUP, INC. By: /s/ Brian O. Casey ------------------------------------- Brian O. Casey, President and Chief Operating Officer

EXHIBIT INDEX Exhibit Number Description - -------------- -------------------------------------------------------------- 99.1 Press Release dated July 26, 2005, entitled "Westwood Holdings Group, Inc. Announces 12.5% Increase in Quarterly Dividend, a Special Cash Dividend of $0.75 per Share and Second Quarter 2005 Results"

                                                                    Exhibit 99.1

  WESTWOOD HOLDINGS GROUP, INC. ANNOUNCES 12.5% INCREASE IN QUARTERLY DIVIDEND,
   A SPECIAL CASH DIVIDEND OF $0.75 PER SHARE AND SECOND QUARTER 2005 RESULTS

     DALLAS, July 26 /PRNewswire-FirstCall/ -- Westwood Holdings Group, Inc.
(NYSE: WHG) today announced that its Board of Directors has approved the payment
of a quarterly cash dividend of $0.09 per common share, an increase of 12.5%
from the previous quarterly dividend of $0.08 per share. The Board has also
approved the payment of a special cash dividend of $0.75 per share in order to
return excess cash to our stockholders. Both the quarterly and special dividends
will be payable on October 3, 2005 to stockholders of record on September 15,
2005.

     Westwood also today reported 2005 second quarter revenues of $5.3 million,
net income of $937,000 and earnings per diluted share of $0.17. This compares to
revenues of $4.9 million, net income of $988,000 and earnings per diluted share
of $0.18 in the second quarter of 2004. For the six months ended June 30, 2005,
Westwood reported revenues of $10.3 million and net income of $1.8 million, or
$0.32 per diluted share, compared to revenues of $10.0 million and net income of
$2.1 million, or $0.39 per diluted share, for the same 2004 period.

     Total expenses for the second quarter of 2005 were $3.7 million compared to
$3.3 million for the second quarter of 2004, an increase of approximately
$386,000. Employee compensation and benefits costs increased by approximately
$334,000 compared to the 2004 second quarter, primarily due to higher restricted
stock expense as a result of our continued efforts to build the firm for future
growth. Information technology expense increased by approximately $32,000
primarily as a result of increased software costs, including the cost to
implement a new customer relationship management system that will enhance our
ability to manage our client relationships and prospect pipeline. Professional
services costs increased by approximately $27,000 primarily as a result of
higher professional fees related to external audit and Sarbanes-Oxley compliance
as well as higher subadvisory fees due to increased assets under management at
Westwood Trust.

     Assets under management were $4.3 billion as of June 30, 2005, an increase
of 11.3% compared to $3.8 billion on June 30, 2004. Average assets under
management for the first six months of 2005 were $4.2 billion, an increase of
8.2% compared with the first half of 2004. The increase in period ending assets
under management was principally attributable to market appreciation of assets
under management and asset inflows from new clients, partially offset by the
withdrawal of assets by certain clients.

     Susan M. Byrne, Westwood's founder and Chief Executive Officer commented,
"While costs associated with restricted stock have penalized near term earnings,
we are confident that this form of compensation strongly aligns the interests
and incentives of our employees with our clients and stockholders and provides
the foundation for growth and stronger results in the future."

Brian O. Casey, Westwood's President and Chief Operating Officer added, "We are pleased to have received a meaningful placement in the second quarter from a new client in our SMidCap Value product, which continues to gain scale and traction in the institutional marketplace and now has $300 million in assets under management. We are especially gratified by this win, as it resulted from a long-standing relationship with an institutional consulting firm that knows our people and process well and was introduced to this new product by our recent institutional marketing efforts around this product. We believe our SMidCap product represents a meaningful opportunity to grow our institutional assets. We continue to look for ways to grow our business through our continuing focus on strong product performance produced by our proprietary research and investment process, increased targeted marketing efforts and exploration of enhanced distribution opportunities." About Westwood Westwood Holdings Group, Inc. manages investment assets and provides services for its clients through two subsidiaries, Westwood Management Corp. and Westwood Trust. Westwood Management Corp. is a registered investment advisor and provides investment advisory services to corporate pension funds, public retirement plans, endowments and foundations, mutual funds and clients of Westwood Trust. Westwood Trust provides, to institutions and high net worth individuals, trust and custodial services and participation in common trust funds that it sponsors. Westwood Holdings Group, Inc. trades on the New York Stock Exchange under the symbol "WHG". For more information, please visit the Company's website at http://www.westwoodgroup.com . Note on Forward-looking Statements Statements that are not purely historical facts, including statements about anticipated or expected future revenue and earnings growth and profitability, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "should," "could," "goal," "target," "designed," "on track," "continue," "comfortable with," "optimistic," "look forward to" and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include the risks and uncertainties referenced in our documents filed with, or furnished to, the Securities and Exchange Commission, including without limitation those identified under the caption "Forward-Looking Statements and Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward- looking statements.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited) Three months ended Six months ended June 30, June 30, ----------------------- ----------------------- 2005 2004 2005 2004 ---------- ---------- ---------- ---------- REVENUES: Advisory fees $ 3,309 $ 3,249 $ 6,500 $ 6,669 Trust fees 1,668 1,442 3,371 2,894 Other revenues 276 249 464 420 Total revenues 5,253 4,940 10,335 9,983 EXPENSES: Employee compensation and benefits 2,681 2,347 5,279 4,684 Sales and marketing 145 148 227 248 Information technology 192 160 377 332 Professional services 274 247 593 471 General and administrative 435 439 912 820 Total expenses 3,727 3,341 7,388 6,555 Income before income taxes 1,526 1,599 2,947 3,428 Provision for income taxes 589 611 1,135 1,323 Net income $ 937 $ 988 $ 1,812 $ 2,105 Earnings per share: Basic $ 0.17 $ 0.18 $ 0.33 $ 0.39 Diluted $ 0.17 $ 0.18 $ 0.32 $ 0.39

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of June 30, 2005 and December 31, 2004 (in thousands, except par values and share amounts) (unaudited) June 30, December 31, 2005 2004 ------------ ------------ ASSETS Current Assets: Cash and cash equivalents $ 1,656 $ 720 Accounts receivable 1,966 1,832 Investments, at market value 18,532 18,632 Other current assets 221 414 Total current assets 22,375 21,598 Goodwill 2,302 2,302 Deferred income taxes 818 517 Property and equipment, net of accumulated depreciation of $385 and $250 1,723 1,860 Total assets $ 27,218 $ 26,277 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued liabilities $ 612 $ 629 Dividends payable 461 460 Compensation and benefits payable 1,577 2,703 Income taxes payable 87 -- Other current liabilities 6 17 Total current liabilities 2,743 3,809 Deferred rent 815 805 Total liabilities 3,558 4,614 Stockholders' Equity: Common stock, $0.01 par value, authorized 10,000,000 shares, issued and outstanding 5,759,397 shares at June 30, 2005; issued and outstanding 5,754,147 shares at December 31, 2004 58 58 Additional paid-in capital 17,128 16,962 Unamortized stock compensation (3,881) (4,821) Retained earnings 10,355 9,464 Total stockholders' equity 23,660 21,663 Total liabilities and stockholders' equity $ 27,218 $ 26,277 Investor Relations (214) 756-6900 SOURCE Westwood Holdings Group, Inc. -0- 07/26/2005 /CONTACT: Bill Hardcastle of Westwood Holdings Group, Inc., +1-214-756-6383/ /Web site: http://www.westwoodgroup.com / - -