Exploring the Sustainability and Growth of CCIF's Dividend Payouts
Vertical Capital Income Fund (CCIF, Financial) recently announced a dividend of $0.1 per share, payable on 2023-11-30, with the ex-dividend date set for 2023-11-16. As investors anticipate this upcoming payment, it is also important to consider the company's dividend history, yield, and growth rates. Using data from GuruFocus, we delve into Vertical Capital Income Fund's dividend performance and assess its sustainability.
Understanding Vertical Capital Income Fund
Vertical Capital Income Fund is a diversified, closed-end management investment company. The fund primarily seeks income, investing in Mortgage Notes secured by residential real estate.
A Look Back at Vertical Capital Income Fund's Dividend History
Since 2019, Vertical Capital Income Fund has maintained a consistent dividend payment record, distributing dividends on a monthly basis. The annual Dividends Per Share chart below tracks these historical trends.
Unpacking Vertical Capital Income Fund's Dividend Yield and Growth
Currently, Vertical Capital Income Fund has a 12-month trailing dividend yield of 10.15% and a 12-month forward dividend yield of 14.73%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, the fund's annual dividend growth rate was 131.30%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
Vertical Capital Income Fund's dividend payout ratio of 27.96% as of 2023-03-31 suggests a significant portion of earnings retained for future growth and unexpected downturns. However, the fund's low profitability rank of 1 out of 10, coupled with net profit reported in only 2 out of the past 10 years, raises concerns about the sustainability of its dividends.
The Future Outlook: Growth Metrics
Robust growth metrics are crucial for the sustainability of dividends. Unfortunately, Vertical Capital Income Fund's growth rank of 1 out of 10 suggests poor growth prospects, which may further jeopardize the sustainability of its dividends.
Conclusion
While Vertical Capital Income Fund's consistent dividend payments and high yield may be appealing, investors should be wary of its low profitability and growth ranks. These factors suggest potential risks to the sustainability of its dividends. Therefore, it is crucial for investors to perform a comprehensive analysis before making investment decisions.
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.
