A Comprehensive Look at the Dividend Performance and Sustainability of Pioneer High Income Trust
Pioneer High Income Trust (PHT, Financial) has recently announced a dividend of $0.06 per share, scheduled for payment on October 31, 2023. The ex-dividend date is set for October 17, 2023. As we anticipate this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. This analysis, based on data from GuruFocus, provides insights into Pioneer High Income Trust's dividend performance and its sustainability.
Understanding Pioneer High Income Trust
Pioneer High Income Trust operates as a closed-end management investment company. Its primary objective is to deliver a high level of current income while seeking capital appreciation. The company primarily invests in fixed income markets, with all its operations carried out within the United States.
Pioneer High Income Trust's Dividend History
Since 2002, Pioneer High Income Trust has maintained a steady dividend payment record, with dividends currently distributed on a monthly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Deciphering Pioneer High Income Trust's Dividend Yield and Growth
At present, Pioneer High Income Trust boasts a 12-month trailing dividend yield of 10.17% and a 12-month forward dividend yield of 9.84%. This indicates an expected decrease in dividend payments over the next 12 months.
Over the past three years, Pioneer High Income Trust's annual dividend growth rate was -3.60%. When extended to a five-year horizon, this rate increased to -0.90% per year. Based on Pioneer High Income Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Pioneer High Income Trust stock as of today is approximately 9.72%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To ascertain the sustainability of the dividend, it's essential 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 March 31, 2023, Pioneer High Income Trust's dividend payout ratio is 0.00.
Pioneer High Income Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Pioneer High Income Trust's profitability 2 out of 10 as of March 31, 2023, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Pioneer High Income Trust's growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Pioneer High Income Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Pioneer High Income Trust's revenue has increased by approximately 31.90% per year on average, a rate that outperforms approximately 80.74% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Pioneer High Income Trust's earnings increased by approximately 31.30% per year on average, a rate that outperforms approximately 75.84% of global competitors.
Conclusion
While Pioneer High Income Trust has demonstrated a consistent dividend payment record, its current dividend growth rate, payout ratio, and profitability rank raise concerns about the sustainability of its dividends. Furthermore, the company's growth metrics indicate poor growth prospects. Therefore, investors should carefully consider these factors when evaluating Pioneer High Income Trust's dividend performance.
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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.
