Just Two Days Till The Carlyle Group Inc. (NASDAQ:CG) Will Be Trading Ex-Dividend

Readers hoping to buy The Carlyle Group Inc. (NASDAQ:CG) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Carlyle Group's shares before the 22nd of February in order to be eligible for the dividend, which will be paid on the 1st of March.

The company's next dividend payment will be US$0.35 per share, and in the last 12 months, the company paid a total of US$1.40 per share. Based on the last year's worth of payments, Carlyle Group stock has a trailing yield of around 3.1% on the current share price of US$44.58. 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! As a result, readers should always check whether Carlyle Group has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Carlyle Group

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. Carlyle Group's dividend is not well covered by earnings, as the company lost money last year. This is not a sustainable state of affairs, so it would be worth investigating if earnings are expected to recover. Carlyle Group paid a dividend despite reporting negative free cash flow last year. That's typically a bad combination and - if this were more than a one-off - not sustainable.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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. If earnings fall far enough, the company could be forced to cut its dividend. Carlyle Group reported a loss last year, but at least the general trend suggests its income has been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Carlyle Group's dividend payments per share have declined at 8.5% per year on average over the past 10 years, which is uninspiring.

Remember, you can always get a snapshot of Carlyle Group's financial health, by checking our visualisation of its financial health, here.

Final Takeaway

Has Carlyle Group got what it takes to maintain its dividend payments? It's not great to see the company paying a dividend despite being loss-making over the last year. 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 being said, if you're still considering Carlyle Group as an investment, you'll find it beneficial to know what risks this stock is facing. For example, we've found 2 warning signs for Carlyle Group that we recommend you consider before investing in the business.

A common investing mistake is buying the first interesting stock you see. Here you can find a full 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.