Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that HomeStreet, Inc. (NASDAQ:HMST) is about to go ex-dividend in just three days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase HomeStreet's shares before the 7th of November to receive the dividend, which will be paid on the 22nd of November.

The company's next dividend payment will be US$0.10 per share. Last year, in total, the company distributed US$0.40 to shareholders. Based on the last year's worth of payments, HomeStreet stock has a trailing yield of around 7.3% on the current share price of $5.47. If you buy this business for its dividend, you should have an idea of whether HomeStreet's dividend is reliable and sustainable. As a result, readers should always check whether HomeStreet has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for HomeStreet

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. HomeStreet paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run.

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. HomeStreet was unprofitable last year, but at least the general trend suggests its earnings have been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. HomeStreet's dividend payments per share have declined at 9.6% per year on average over the past four years, which is uninspiring.

We update our analysis on HomeStreet every 24 hours, so you can always get the latest insights on its financial health, here.