Assessing the Sustainability and Prospects of BIGZ's Dividends
BlackRock Innovation & Growth Tr (BIGZ, Financial) recently announced a dividend of $0.05 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-13. As investors eagerly anticipate this upcoming payment, it's also pertinent to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, we will examine BlackRock Innovation & Growth Tr's dividend performance and evaluate its sustainability.
Understanding BlackRock Innovation & Growth Tr's Business Model
BlackRock Innovation & Growth Tr is a non-diversified, closed-end management investment company. The Trust's investment objectives are to provide total return and income through a mix of current income, current gains, and long-term capital appreciation.
BlackRock Innovation & Growth Tr's Dividend History
BlackRock Innovation & Growth Tr has maintained a consistent dividend payment record since 2021, with dividends currently distributed on a monthly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
BlackRock Innovation & Growth Tr's Dividend Yield and Growth
As of today, BlackRock Innovation & Growth Tr currently has a 12-month trailing dividend yield of 11.92% and a 12-month forward dividend yield of 7.76%. This suggests an expectation of decreased dividend payments over the next 12 months.
Based on BlackRock Innovation & Growth Tr's dividend yield and five-year growth rate, the 5-year yield on cost of BlackRock Innovation & Growth Tr stock as of today is approximately 11.92%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, we need to examine 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, BlackRock Innovation & Growth Tr's dividend payout ratio is 0.00.
BlackRock Innovation & Growth Tr's profitability rank provides an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks BlackRock Innovation & Growth Tr's profitability 1 out of 10 as of 2023-06-30, suggesting that the dividend may not be sustainable. The company has reported net profit in 0 years out of the past 10 years.
Considering Growth Metrics for Future Prospects
For a company to sustain its dividends, it must possess robust growth metrics. BlackRock Innovation & Growth Tr's growth rank of 1 out of 10 suggests that the company has poor growth prospects, and thus, the dividend may not be sustainable.
Concluding Thoughts
Considering BlackRock Innovation & Growth Tr's dividend payments, growth rate, payout ratio, profitability, and growth metrics, it appears that the company's dividends may face sustainability challenges. The low profitability and growth ranks, coupled with an expectation of decreased dividend payments, suggest caution for investors seeking consistent dividend returns.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
