Only Four Days Left To Cash In On Perella Weinberg Partners' (NASDAQ:PWP) Dividend

It looks like Perella Weinberg Partners (NASDAQ:PWP) is about to go ex-dividend in the next 4 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 important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Perella Weinberg Partners' shares before the 27th of February to receive the dividend, which will be paid on the 11th of March.

The company's upcoming dividend is US$0.07 a share, following on from the last 12 months, when the company distributed a total of US$0.28 per share to shareholders. Last year's total dividend payments show that Perella Weinberg Partners has a trailing yield of 2.2% on the current share price of US$12.82. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Perella Weinberg Partners has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Perella Weinberg Partners

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. Perella Weinberg Partners paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run.

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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Perella Weinberg Partners reported a loss last year, but at least the general trend suggests its income has been improving over the past three years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. It looks like the Perella Weinberg Partners dividends are largely the same as they were three years ago.

Get our latest analysis on Perella Weinberg Partners's balance sheet health here.

The Bottom Line

From a dividend perspective, should investors buy or avoid Perella Weinberg Partners? It's not great to see the company paying a dividend despite being loss-making over the last year. We're unconvinced on the company's merits, and think there might be better opportunities out there.

However if you're still interested in Perella Weinberg Partners as a potential investment, you should definitely consider some of the risks involved with Perella Weinberg Partners. For example, we've found 1 warning sign for Perella Weinberg Partners 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.

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.