Shares of high-end jeweler Tiffany  (TIF - Get Report) will trade ex-dividend Thursday, March 17. To qualify for a dividend check, investors must own Tiffany stock before its ex-dividend date, which is the last day the company will finalize its roster of shareholders to whom it will send dividend checks.

Tiffany stock -- down some 9% on the year to date and 16% in the past 12 months -- has seen its P/E fall more than four points during that span as its stock is now 25% below its 52-week high. Its stock has dropped as its per-share earnings estimates for the just-ended quarter declined from $1.51 to $1.41. In my view, this puts the company in a better position to not only beat those estimates, it improves Tiffany's risk-versus-reward profile.

What's more, as Tiffany stock has declined, the company's dividend yield has steadily increased. With its shares trading at around $69, its dividend yields 2.30% annually, which is 28 basis points higher than the 2.00% average yield paid out by companies in the S&P 500 (SPX) index. Tiffany will send its payment on April 11 to shareholders of record on March 21. There are also other reasons to hold the stock beyond its dividend payment.

There's now an implied premium of 15% on Tiffany stock, based on its average analyst 12-month price target of $80.

True, revenue has been hard to come by for the company, owing to the strong U.S. dollar that devalues is overseas sales. In its third quarter, that negatively impacted its revenue by three percentage points. Global sales rose 4%, but were up just 1% on a local currency basis. But thanks to effective cost management, Tiffany's gross profit rate expanded 70 basis points, contributing to the company generating some $864 million in operating cash flow.

In that vein, the company plans to use some of that cash to open several new stores worldwide, targeting regions like Europe, Russia, Asia-Pacific and Japan. It would seem the company's management isn't dissuaded by the strong dollar. And if they are, the growth plan implies they have some confidence to successfully navigate it.

Given these factors, combined with the reduced estimates and solid the dividend, Tiffany stock should be bought on a its long-term outlook.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.