Be Sure To Check Out Piper Sandler Companies (NYSE:PIPR) Before It Goes Ex-Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Piper Sandler Companies (NYSE:PIPR) is about to trade ex-dividend in the next 4 days. If you purchase the stock on or after the 28th of February, you won't be eligible to receive this dividend, when it is paid on the 13th of March.
Piper Sandler Companies's next dividend payment will be US$1.13 per share, on the back of last year when the company paid a total of US$2.25 to shareholders. Based on the last year's worth of payments, Piper Sandler Companies stock has a trailing yield of around 2.7% on the current share price of $82.1. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Piper Sandler Companies can afford its dividend, and if the dividend could grow.
View our latest analysis for Piper Sandler Companies
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. Piper Sandler Companies has a low and conservative payout ratio of just 24% of its income after tax.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. 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 encouraged by the steady growth at Piper Sandler Companies, with earnings per share up 9.6% on average over the last five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last three years, Piper Sandler Companies has lifted its dividend by approximately 22% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
Final Takeaway
Should investors buy Piper Sandler Companies for the upcoming dividend? Piper Sandler Companies has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. In summary, Piper Sandler Companies appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
Curious what other investors think of Piper Sandler Companies? See what analysts are forecasting, with this visualisation of its historical and future estimated earnings and cash flow.
If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
