An In-depth Analysis of the Firm's Dividend Performance and Prospective Sustainability
Cohen & Steers Select Preferred and Income Fund Inc(PSF, Financial) recently announced a dividend of $0.13 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Cohen & Steers Select Preferred and Income Fund Inc's dividend performance and assess its sustainability.
Company Overview
Cohen & Steers Select Preferred and Income Fund Inc is a diversified, closed-end investment company. The Fund's primary investment objective is high current income with capital appreciation as its secondary objective. The Fund invests at least 80% of its Managed Assets in preferred and other income securities issued by U.S. and non-U.S. companies.
Dividend History of Cohen & Steers Select Preferred and Income Fund Inc
Cohen & Steers Select Preferred and Income Fund Inc has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dividend Yield and Growth: A Closer Look
As of today, Cohen & Steers Select Preferred and Income Fund Inc currently has a 12-month trailing dividend yield of 8.90% and a 12-month forward dividend yield of 8.40%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Cohen & Steers Select Preferred and Income Fund Inc's annual dividend growth rate was -7.80%. Extended to a five-year horizon, this rate increased to -4.30% per year. Based on Cohen & Steers Select Preferred and Income Fund Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cohen & Steers Select Preferred and Income Fund Inc stock as of today is approximately 7.14%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate 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, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Cohen & Steers Select Preferred and Income Fund Inc's dividend payout ratio is 0.00.
Cohen & Steers Select Preferred and Income Fund Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cohen & Steers Select Preferred and Income Fund Inc's profitability 2 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of past 10 years.
Growth Metrics: A Glimpse into the Future
To ensure the sustainability of dividends, a company must have robust growth metrics. Cohen & Steers Select Preferred and Income 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.
Conclusion
In conclusion, while Cohen & Steers Select Preferred and Income Fund Inc has a history of consistent dividend payments, its negative dividend growth rate, low profitability rank, and poor growth metrics cast a shadow on the sustainability of its dividends in the long run. Investors should carefully consider these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
