PJT Partners (NYSE:PJT) Will Pay A Dividend Of $0.25
PJT Partners Inc. (NYSE:PJT) will pay a dividend of $0.25 on the 21st of June. This means the annual payment will be 1.6% of the current stock price, which is lower than the industry average.
Check out our latest analysis for PJT Partners
PJT Partners' Payment Has Solid Earnings Coverage
If it is predictable over a long period, even low dividend yields can be attractive. However, PJT Partners' earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.
The next year is set to see EPS grow by 42.7%. If the dividend continues on this path, the payout ratio could be 27% by next year, which we think can be pretty sustainable going forward.
PJT Partners Is Still Building Its Track Record
It is great to see that PJT Partners has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. The annual payment during the last 7 years was $0.20 in 2016, and the most recent fiscal year payment was $1.00. This implies that the company grew its distributions at a yearly rate of about 26% over that duration. PJT Partners has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. PJT Partners has impressed us by growing EPS at 40% per year over the past five years. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.
We Really Like PJT Partners' Dividend
Overall, we like to see the dividend staying consistent, and we think PJT Partners might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Taking the debate a bit further, we've identified 1 warning sign for PJT Partners that investors need to be conscious of moving forward. If you are a dividend investor, you might also want to look at our curated list of high yield 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.
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