Perella Weinberg Partners (NASDAQ:PWP) Has Affirmed Its Dividend Of $0.07

The board of Perella Weinberg Partners (NASDAQ:PWP) has announced that it will pay a dividend on the 10th of June, with investors receiving $0.07 per share. The dividend yield is 1.8% based on this payment, which is a little bit low compared to the other companies in the industry.

See our latest analysis for Perella Weinberg Partners

Perella Weinberg Partners Might Find It Hard To Continue The Dividend

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Perella Weinberg Partners isn't generating any profits, and it is paying out a very high proportion of the cash it is earning. This is quite a strong warning sign that the dividend may not be sustainable.

Over the next year, EPS might fall by 27.2% based on recent performance. This means the company will be unprofitable and managers could face the tough choice between continuing to pay the dividend or taking pressure off the balance sheet.

Perella Weinberg Partners Doesn't Have A Long Payment History

The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. The payments haven't really changed that much since 3 years ago. We like that the dividend hasn't been shrinking. However we're conscious that the company hasn't got an overly long track record of dividend payments yet, which makes us wary of relying on its dividend income.

Dividend Growth Potential Is Shaky

The company's investors will be pleased to have been receiving dividend income for some time. However, things aren't all that rosy. Over the past three years, it looks as though Perella Weinberg Partners' EPS has declined at around 27% a year. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future.

Perella Weinberg Partners' Dividend Doesn't Look Great

Overall, while some might be pleased that the dividend wasn't cut, we think this may help Perella Weinberg Partners make more consistent payments in the future. The company seems to be stretching itself a bit to make such big payments, but it doesn't appear they can be consistent over time. Overall, the dividend is not reliable enough to make this a good income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Just as an example, we've come across 2 warning signs for Perella Weinberg Partners you should be aware of, and 1 of them shouldn't be ignored. Is Perella Weinberg Partners not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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