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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. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled 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. In other words, investors can purchase Janus Henderson Group's shares before the 12th of May in order to be eligible for the dividend, which will be paid on the 29th of May.
The company's next dividend payment will be US$0.40 per share, and in the last 12 months, the company paid a total of US$1.60 per share. Looking at the last 12 months of distributions, Janus Henderson Group has a trailing yield of approximately 4.6% on its current stock price of US$35.05. If you buy this business for its dividend, you should have an idea of whether Janus Henderson Group's dividend is reliable and sustainable. So we need to investigate whether Janus Henderson Group can afford its dividend, and if the dividend could grow.
We check all companies for important risks. See what we found for Janus Henderson Group in our free report.
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. Janus Henderson Group paid out more than half (62%) of its earnings last year, which is a regular payout ratio for most companies.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
See our latest analysis for Janus Henderson Group
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 earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at Janus Henderson Group, with earnings per share up 2.3% on average over the last five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Janus Henderson Group has delivered 2.8% dividend growth per year on average over the past eight years. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.