An In-depth Look at the Dividend Performance and Sustainability of Eaton Vance Tax-mgd Dvsf Eq Inc Fd
Eaton Vance Tax-mgd Dvsf Eq Inc Fd (ETY, Financial) recently announced a dividend of $0.08 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-20. 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 delve into Eaton Vance Tax-mgd Dvsf Eq Inc Fd's dividend performance and assess its sustainability.
What Does Eaton Vance Tax-mgd Dvsf Eq Inc Fd Do?
Eaton Vance Tax-mgd Dvsf Eq Inc Fd is a diversified, closed-end management investment company. Its primary investment objective is to provide current income and gains. The secondary objective of the fund is capital appreciation. It invests in a diversified portfolio of domestic and foreign common stocks with an emphasis on dividend-paying stocks and writes S&P 500 Index call options with respect to a portion of the value of its common stock portfolio to generate current cash flow from the options premium received. Its portfolio of investments spans capital markets, banks, internet and direct marketing retail, biotechnology, media, oil, gas, consumable fuels, and other sectors.
A Glimpse at Eaton Vance Tax-mgd Dvsf Eq Inc Fd's Dividend History
Eaton Vance Tax-mgd Dvsf Eq Inc Fd has maintained a consistent dividend payment record since 2007, with dividends currently distributed on a monthly basis.
Breaking Down Eaton Vance Tax-mgd Dvsf Eq Inc Fd's Dividend Yield and Growth
As of today, Eaton Vance Tax-mgd Dvsf Eq Inc Fd boasts a 12-month trailing dividend yield of 8.64% and a 12-month forward dividend yield of 8.54%, suggesting a decrease in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 3.30%, which decreased to 1.60% per year when extended to a five-year horizon. Based on the dividend yield and five-year growth rate, the 5-year yield on cost of Eaton Vance Tax-mgd Dvsf Eq Inc Fd stock as of today is approximately 9.35%.
The Sustainability Question: 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 2023-04-30, Eaton Vance Tax-mgd Dvsf Eq Inc Fd's dividend payout ratio is 1.71, which may suggest that the company's dividend may not be sustainable. Eaton Vance Tax-mgd Dvsf Eq Inc Fd's profitability rank, as of 2023-04-30, is 2 out of 10, suggesting that the dividend may not be sustainable. The company has reported net profit in 5 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. Eaton Vance Tax-mgd Dvsf Eq Inc Fd'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 Eaton Vance Tax-mgd Dvsf Eq Inc Fd has a consistent dividend payment record and a high yield, its high payout ratio, low profitability rank, and poor growth rank raise questions about the sustainability of its dividends. 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.
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.
