Perella Weinberg Partners (NASDAQ:PWP) stock is about to trade ex-dividend in 4 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 of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Thus, you can purchase Perella Weinberg Partners' shares before the 27th of February in order to receive the dividend, which the company will pay on the 11th of March.
The company's next dividend payment will be US$0.07 per share, and in the last 12 months, the company paid a total of US$0.28 per share. Based on the last year's worth of payments, Perella Weinberg Partners has a trailing yield of 2.2% on the current stock 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.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Perella Weinberg Partners's dividend is not well covered by earnings, as the company lost money last year. This is not a sustainable state of affairs, so it would be worth investigating if earnings are expected to recover.
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.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Perella Weinberg Partners's dividend payments are broadly unchanged compared to where they were three years ago.
Remember, you can always get a snapshot of Perella Weinberg Partners's financial health, by checking our visualisation of its financial health, here.
To Sum It Up
Should investors buy Perella Weinberg Partners for the upcoming dividend? It's not great to see the company paying a dividend despite being loss-making over the last year. We think there are likely better opportunities out there.
With that being said, if dividends aren't your biggest concern with Perella Weinberg Partners, you should know about the other risks facing this business. Every company has risks, and we've spotted 1 warning sign for Perella Weinberg Partners you should know about.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
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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.