Readers hoping to buy Piper Sandler Companies (NYSE:PIPR) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. You can purchase shares before the 2nd of March in order to receive the dividend, which the company will pay on the 12th of March.

Piper Sandler Companies's next dividend payment will be US$2.25 per share, on the back of last year when the company paid a total of US$3.13 to shareholders. Based on the last year's worth of payments, Piper Sandler Companies has a trailing yield of 2.9% on the current stock price of $108.67. If you buy this business for its dividend, you should have an idea of whether Piper Sandler Companies's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

See our latest analysis for Piper Sandler Companies

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. That's why it's good to see Piper Sandler Companies paying out a modest 43% of its earnings.

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?

When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. So we're not too excited that Piper Sandler Companies's earnings are down 2.6% a year over the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last four years, Piper Sandler Companies has lifted its dividend by approximately 26% a year on average.

To Sum It Up

Is Piper Sandler Companies an attractive dividend stock, or better left on the shelf? Piper Sandler Companies's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.

If you want to look further into Piper Sandler Companies, it's worth knowing the risks this business faces. For example - Piper Sandler Companies has 3 warning signs 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.

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. 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.

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