Yahoo Finance Is It Smart To Buy Cohen & Steers, Inc. (NYSE:CNS) Before It Goes Ex-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 Cohen & Steers, Inc. (NYSE:CNS) is about to go ex-dividend in just 3 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Therefore, if you purchase Cohen & Steers' shares on or after the 12th of May, you won't be eligible to receive the dividend, when it is paid on the 25th of May.
The company's next dividend payment will be US$0.57 per share. Last year, in total, the company distributed US$2.28 to shareholders. Last year's total dividend payments show that Cohen & Steers has a trailing yield of 4.1% on the current share price of $55.11. If you buy this business for its dividend, you should have an idea of whether Cohen & Steers's dividend is reliable and sustainable. As a result, readers should always check whether Cohen & Steers has been able to grow its dividends, or if the dividend might be cut.
Check out our latest analysis for Cohen & Steers
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Cohen & Steers paid out more than half (66%) of its earnings last year, which is a regular payout ratio for most companies.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
Click here to see how much of its profit Cohen & Steers paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. For this reason, we're glad to see Cohen & Steers's earnings per share have risen 11% per annum over the last five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Cohen & Steers has lifted its dividend by approximately 2.9% a year on average. It's good to see both earnings and the dividend have improved - although the former has been rising much quicker than the latter, possibly due to the company reinvesting more of its profits in growth.
The Bottom Line
Should investors buy Cohen & Steers for the upcoming dividend? Cohen & Steers has an acceptable payout ratio and its earnings per share have been improving at a decent rate. In summary, Cohen & Steers appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
So while Cohen & Steers looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Our analysis shows 1 warning sign for Cohen & Steers and you should be aware of it before buying any shares.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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.
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