An in-depth analysis of the company's dividend performance and sustainability
Recently, Cohen & Steers Infrastructure Fund Inc (UTF, Financial) announced a dividend of $0.16 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. As investors eagerly anticipate this forthcoming payment, it's essential to analyze the company's dividend history, yield, and growth rates. Utilizing GuruFocus data, let's delve into Cohen & Steers Infrastructure Fund Inc's dividend performance and assess its sustainability.
Understanding Cohen & Steers Infrastructure Fund Inc
Cohen & Steers Infrastructure Fund Inc is a diversified, closed-end management investment company. The Fund's primary investment objective is total return with an emphasis on income. It invests at least 80% of its managed assets in securities issued by infrastructure companies, which include utilities, pipelines, toll roads, airports, railroads, ports, telecommunications companies, and other infrastructure companies under normal market conditions.
Examining Cohen & Steers Infrastructure Fund Inc's Dividend History
Since 2004, Cohen & Steers Infrastructure Fund Inc has maintained a consistent dividend payment record, with dividends currently distributed on a monthly basis. The chart below depicts the annual Dividends Per Share for tracking historical trends.
Dissecting Cohen & Steers Infrastructure Fund Inc's Dividend Yield and Growth
As of today, Cohen & Steers Infrastructure Fund Inc currently has a 12-month trailing dividend yield of 8.83% and a 12-month forward dividend yield of 8.83%. This indicates an expectation of consistent dividend payments over the next 12 months.
Over the past three years, Cohen & Steers Infrastructure Fund Inc's annual dividend growth rate was -2.40%. When extended to a five-year horizon, this rate increased to -0.50% per year. Consequently, the 5-year yield on cost of Cohen & Steers Infrastructure Fund Inc stock as of today is approximately 8.61%.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend is evaluated by examining the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Cohen & Steers Infrastructure Fund Inc's dividend payout ratio is 0.00.
Cohen & Steers Infrastructure Fund Inc's profitability rank provides an understanding of the company's earnings prowess relative to its peers. As of 2023-06-30, Cohen & Steers Infrastructure Fund Inc's profitability rank is 2 out of 10, suggesting that the dividend may not be sustainable, as the company has reported net profit in 3 years out of the past 10 years.
Assessing Future Prospects: Growth Metrics
A company must have robust growth metrics to ensure the sustainability of dividends. Cohen & Steers Infrastructure Fund Inc's growth rank of 2 out of 10 suggests that the company has poor growth prospects, and thus, the dividend may not be sustainable.
Concluding Thoughts
While Cohen & Steers Infrastructure Fund Inc offers a compelling dividend yield, the company's negative dividend growth rate, low profitability rank, and poor growth prospects raise concerns about the sustainability of its dividends. As such, investors should exercise caution and conduct further research before making investment decisions.
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