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Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Janus Henderson Group plc (NYSE:JHG) is about to trade ex-dividend in the next 4 days. This means that investors who purchase shares on or after the 10th of May will not receive the dividend, which will be paid on the 27th of May.
Janus Henderson Group's upcoming dividend is US$0.38 a share, following on from the last 12 months, when the company distributed a total of US$1.52 per share to shareholders. Calculating the last year's worth of payments shows that Janus Henderson Group has a trailing yield of 4.2% on the current share price of $36.05. 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 check whether the dividend payments are covered, and if earnings are growing.
Check out our latest analysis for Janus Henderson Group
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. That's why it's good to see Janus Henderson Group paying out a modest 46% 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?
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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That explains why we're not overly excited about Janus Henderson Group's flat earnings over the past five years. We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share.
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, four years ago, Janus Henderson Group has lifted its dividend by approximately 4.4% a year on average.
Final Takeaway
Is Janus Henderson Group an attractive dividend stock, or better left on the shelf? Janus Henderson Group has seen its earnings per share stagnate in recent years, although the company reinvests more than half of its profits in the business, which could bode well for its future prospects. In summary, Janus Henderson Group appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.