Dividend Investors: Don't Be Too Quick To Buy Cohen & Steers, Inc. (NYSE:CNS) For Its Upcoming Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Cohen & Steers, Inc. (NYSE:CNS) is about to trade ex-dividend in the next 3 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 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. In other words, investors can purchase Cohen & Steers' shares before the 12th of August in order to be eligible for the dividend, which will be paid on the 22nd of August.

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$2.36 per share. Based on the last year's worth of payments, Cohen & Steers has a trailing yield of 2.9% on the current stock price of US$81.61. If you buy this business for its dividend, you should have an idea of whether Cohen & Steers's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for Cohen & Steers

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Cohen & Steers paid out 90% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances.

When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut.

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 decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're not enthused to see that Cohen & Steers's earnings per share have remained effectively flat 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.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Cohen & Steers has lifted its dividend by approximately 2.7% a year on average.

Final Takeaway

Is Cohen & Steers an attractive dividend stock, or better left on the shelf? While we're glad to see that its earnings aren't shrinking, we're not enamored of the fact that it's paying out 90% of last year's earnings. Cohen & Steers doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend.

So if you're still interested in Cohen & Steers despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. For example, Cohen & Steers has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

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.