Cohen & Steers, Inc. (NYSE:CNS) Passed Our Checks, And It's About To Pay A US$0.57 Dividend
It looks like Cohen & Steers, Inc. (NYSE:CNS) is about to go ex-dividend in the next 3 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a 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. This means that investors who purchase Cohen & Steers' shares on or after the 11th of August will not receive the dividend, which will be paid on the 24th of August.
The company's upcoming dividend is US$0.57 a share, following on from the last 12 months, when the company distributed a total of US$2.28 per share to shareholders. Based on the last year's worth of payments, Cohen & Steers has a trailing yield of 3.5% on the current stock price of $64.48. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to check whether the dividend payments are covered, and if earnings are growing.
See 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. Its dividend payout ratio is 76% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. It could become a concern if earnings started to decline.
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. With that in mind, we're encouraged by the steady growth at Cohen & Steers, with earnings per share up 8.1% on average 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. It looks like the Cohen & Steers dividends are largely the same as they were 10 years ago.
The Bottom Line
Has Cohen & Steers got what it takes to maintain its dividend payments? Cohen & Steers has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. We think there are likely better opportunities out there.
However if you're still interested in Cohen & Steers as a potential investment, you should definitely consider some of the risks involved with Cohen & Steers. Case in point: We've spotted 1 warning sign for Cohen & Steers you should be aware of.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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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.
