Yahoo Finance Here's Why We're Wary Of Buying Perella Weinberg Partners' (NASDAQ:PWP) For Its Upcoming Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Perella Weinberg Partners (NASDAQ:PWP) is about to go ex-dividend in just four days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase Perella Weinberg Partners' shares on or after the 31st of August, you won't be eligible to receive the dividend, when it is paid on the 12th of September.
The company's upcoming dividend is US$0.07 a share, following on from the last 12 months, when the company distributed a total of US$0.28 per share to shareholders. Looking at the last 12 months of distributions, Perella Weinberg Partners has a trailing yield of approximately 2.6% on its current stock price of $10.8. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
View our latest analysis for Perella Weinberg Partners
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Perella Weinberg Partners reported a loss last year, so it's not great to see that it has continued paying a dividend.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies with falling earnings are riskier for dividend shareholders. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Perella Weinberg Partners was unprofitable last year, and sadly its loss per share worsened by 124% on the previous year.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Perella Weinberg Partners's dividend payments are broadly unchanged compared to where they were two years ago. When earnings are declining yet the dividends are flat, typically the company is either paying out a higher portion of its earnings, or paying out of cash or debt on the balance sheet, neither of which is ideal.
Remember, you can always get a snapshot of Perella Weinberg Partners's financial health, by checking our visualisation of its financial health, here.
The Bottom Line
Has Perella Weinberg Partners got what it takes to maintain its dividend payments? It's definitely not great to see that it paid a dividend despite reporting a loss last year. Worse, the general trend in its earnings looks negative in recent times. All things considered, we're not optimistic about its dividend prospects, and would be inclined to leave it on the shelf for now.
With that in mind though, if the poor dividend characteristics of Perella Weinberg Partners don't faze you, it's worth being mindful of the risks involved with this business. Our analysis shows 1 warning sign for Perella Weinberg Partners and you should be aware of it before buying any shares.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
