Why You Might Be Interested In Cohen & Steers, Inc. (NYSE:CNS) For Its Upcoming Dividend

By
Simply Wall St
Published
November 07, 2021
NYSE:CNS
Source: Shutterstock

Cohen & Steers, Inc. (NYSE:CNS) stock is about to trade ex-dividend in 3 days. 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 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. In other words, investors can purchase Cohen & Steers' shares before the 12th of November in order to be eligible for the dividend, which will be paid on the 30th of November.

The company's next dividend payment will be US$1.70 per share, on the back of last year when the company paid a total of US$2.86 to shareholders. Based on the last year's worth of payments, Cohen & Steers stock has a trailing yield of around 2.8% on the current share price of $100.45. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.

Check out 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 is paying out an acceptable 59% of its profit, a common payout level among most companies.

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.

historic-dividend
NYSE:CNS Historic Dividend November 8th 2021

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see Cohen & Steers's earnings per share have risen 16% per annum over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Cohen & Steers has delivered an average of 17% per year annual increase in its dividend, based on the past 10 years of dividend payments. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

The Bottom Line

Is Cohen & Steers an attractive dividend stock, or better left on the shelf? Cohen & Steers has an acceptable payout ratio and its earnings per share have been improving at a decent rate. In summary, Cohen & Steers appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

While it's tempting to invest in Cohen & Steers for the dividends alone, you should always be mindful of the risks involved. For example - Cohen & Steers has 1 warning sign we think you should be aware of.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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