Cohen & Steers, Inc. (NYSE:CNS) Pays A US$0.59 Dividend In Just Three Days

Readers hoping to buy Cohen & Steers, Inc. (NYSE:CNS) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. 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 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 Cohen & Steers' shares before the 1st of March in order to be eligible for the dividend, which will be paid on the 14th of March.

The company's next dividend payment will be US$0.59 per share, and in the last 12 months, the company paid a total of US$2.28 per share. Last year's total dividend payments show that Cohen & Steers has a trailing yield of 3.2% on the current share price of US$71.79. If you buy this business for its dividend, you should have an idea of whether Cohen & Steers's dividend is reliable and sustainable. So we need to investigate whether Cohen & Steers can afford its dividend, and if the dividend could grow.

See our latest analysis for Cohen & Steers

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 87% 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.

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

Have Earnings And Dividends Been Growing?

Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings fall far enough, the company could be forced to cut its dividend. That explains why we're not overly excited about Cohen & Steers's flat earnings over the past five years. Better than seeing them fall off a cliff, for sure, but the best dividend stocks grow their earnings meaningfully over the long run.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Cohen & Steers's dividend payments are broadly unchanged compared to where they were 10 years ago.

The Bottom Line

Is Cohen & Steers an attractive dividend stock, or better left on the shelf? Cohen & Steers has been struggling to generate growth while also paying out more than half of its earnings to shareholders as dividends. At best we would put it on a watch-list to see if business conditions improve, as it doesn't look like a clear opportunity right now.

If you want to look further into Cohen & Steers, it's worth knowing the risks this business faces. Our analysis shows 1 warning sign for Cohen & Steers and you should be aware of this before buying any shares.

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.