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Why You Might Be Interested In Cohen & Steers, Inc. (NYSE:CNS) 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 Cohen & Steers, Inc. (NYSE:CNS) is about to go ex-dividend in just four 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. Meaning, you will need to purchase Cohen & Steers' shares before the 9th of November to receive the dividend, which will be paid on the 19th of November.
The company's upcoming dividend is US$0.67 a share, following on from the last 12 months, when the company distributed a total of US$2.68 per share to shareholders. Based on the last year's worth of payments, Cohen & Steers has a trailing yield of 3.7% on the current stock price of US$73.10. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Its dividend payout ratio is 80% 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. We'd be worried about the risk of a drop in earnings.
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.
View our latest analysis for Cohen & Steers
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. For this reason, we're glad to see Cohen & Steers's earnings per share have risen 15% per annum over the last five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Cohen & Steers has delivered an average of 5.7% per year annual increase in its dividend, based on the past 10 years of dividend payments. Earnings per share have been growing much quicker than dividends, potentially because Cohen & Steers is keeping back more of its profits to grow the business.
Final Takeaway
Should investors buy Cohen & Steers for the upcoming dividend? Earnings per share are growing nicely, and Cohen & Steers is paying out a percentage of its earnings that is around the average for dividend-paying stocks. 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. To that end, you should learn about the 2 warning signs we've spotted with Cohen & Steers (including 1 which is a bit concerning).
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.
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