CNO Financial Group, Inc. (NYSE: CNO) looks interesting, and it’s about to pay a dividend
Some investors rely on dividends to grow their wealth, and if you’re one of those dividend sleuths, you might be intrigued to know that CNO Financial Group, Inc. (NYSE: CNO) is set to be ex-dividend in just 3 days. The ex-dividend date is one working day before the registration date, which is the deadline by which shareholders must be present on the books of the company to be eligible for the payment of a dividend. The ex-dividend date is important because any share transaction must have been settled before the registration date to be eligible for a dividend. Thus, you can buy CNO Financial Group shares before June 9 in order to receive the dividend that the company will pay on June 24.
The company’s next dividend will be US $ 0.13 per share, and over the past 12 months, the company has paid a total of US $ 0.52 per share. Looking at the last 12 months of distributions, CNO Financial Group has a rolling return of approximately 2.0% on its current price of $ 26.12. We love to see companies pay a dividend, but it’s also important to make sure that laying the golden eggs is not going to kill our goose that lays the golden eggs! It is therefore necessary to check whether dividend payments are covered and whether profits are growing.
Dividends are generally paid out of company profits. If a company pays more dividends than it made a profit, then the dividend could be unsustainable. CNO Financial Group paid only 14% of its profits last year, which in our opinion is moderately low and leaves a lot of room for unforeseen circumstances.
Generally speaking, the lower a company’s payout ratios, the more resilient its dividend.
NYSE: CNO Historical Dividend June 5, 2021
Have profits and dividends increased?
Stocks of companies that generate sustainable earnings growth often offer the best dividend prospects because it’s easier to raise the dividend when earnings rise. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold massively at the same time. Luckily for readers, CNO Financial Group’s earnings per share have grown 19% annually over the past five years.
Many investors will assess a company’s dividend yield by evaluating how dividend payments have changed over time. Over the past nine years, CNO Financial Group has increased its dividend to around 23% per year on average. Both earnings per share and dividends have been rising rapidly lately, which is great to see.
Is CNO Financial Group an attractive dividend-paying stock, or rather left on the back burner? When companies grow rapidly and keep the majority of profits within the company, it is usually a sign that reinvesting profits is creating more value than paying dividends to shareholders. Perhaps even more important – it can sometimes indicate that management is focused on the long-term future of the business. In summary, CNO Financial Group seems to have some promise as a dividend-paying stock, and we suggest you take a closer look.
With this in mind, an essential part of in-depth stock research is being aware of the risks stocks currently face. For example, we found 4 warning signs for CNO Financial Group (2 cannot be ignored!) That deserve your attention before investing in stocks.
If you are looking for dividend paying stocks, we recommend check out our list of the highest dividend paying stocks with a yield above 2% and a dividend coming soon.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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