It Might Not Be A Great Idea To Buy Partners Group Holding AG (VTX:PGHN) For Its Next Dividend

Partners Group Holding AG (VTX:PGHN) is about to trade ex-dividend in the next 4 days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Thus, you can purchase Partners Group Holding's shares before the 23rd of May in order to receive the dividend, which the company will pay on the 27th of May.

The company's next dividend payment will be CHF042.00 per share, on the back of last year when the company paid a total of CHF42.00 to shareholders. Based on the last year's worth of payments, Partners Group Holding has a trailing yield of 3.6% on the current stock price of CHF01182.50. 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.

We've discovered 2 warning signs about Partners Group Holding. View them for free.

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. Last year Partners Group Holding paid out 97% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings.

Generally, the higher a company's payout ratio, the more the dividend is at risk of being reduced.

View our latest analysis for Partners Group Holding

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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SWX:PGHN Historic Dividend May 18th 2025

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 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 Partners Group Holding, with earnings per share up 5.1% on average over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Partners Group Holding has lifted its dividend by approximately 17% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.