An in-depth examination of the dividend history, growth, and sustainability of Eaton Vance Tax Advgd Gbl Div Inc Fd (ETG, Financial)
Eaton Vance Tax Advgd Gbl Div Inc Fd (ETG) recently announced a dividend of $0.1 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 look into Eaton Vance Tax Advgd Gbl Div Inc Fds dividend performance and assess its sustainability.
What Does Eaton Vance Tax Advgd Gbl Div Inc Fd Do?
Eaton Vance Tax Advgd Gbl Div Inc Fd is a diversified, closed-end management investment company. Its investment objective is to provide a high level of after-tax total return consisting of tax-advantaged dividend income and capital appreciation. The fund pursues its objective by investing in dividend-paying common and preferred stocks. Its portfolio of investments consists of aerospace and defense, capital markets, diversified telecommunication services, electrical equipment, biotechnology, banks, and other areas.
A Glimpse at Eaton Vance Tax Advgd Gbl Div Inc Fd's Dividend History
Eaton Vance Tax Advgd Gbl Div Inc Fd has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Eaton Vance Tax Advgd Gbl Div Inc Fd's Dividend Yield and Growth
As of today, Eaton Vance Tax Advgd Gbl Div Inc Fd currently has a 12-month trailing dividend yield of 8.19% and a 12-month forward dividend yield of 7.98%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Eaton Vance Tax Advgd Gbl Div Inc Fd's annual dividend growth rate was 8.20%. Extended to a five-year horizon, this rate decreased to 4.00% per year. Based on Eaton Vance Tax Advgd Gbl Div Inc Fd's dividend yield and five-year growth rate, the 5-year yield on cost of Eaton Vance Tax Advgd Gbl Div Inc Fd stock as of today is approximately 9.96%.
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 Advgd Gbl Div Inc Fd's dividend payout ratio is 2.51. This may suggest that the company's dividend may not be sustainable.
Eaton Vance Tax Advgd Gbl Div Inc Fd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Eaton Vance Tax Advgd Gbl Div Inc Fd's profitability 2 out of 10 as of 2023-04-30, suggesting the dividend may not be sustainable. The company has reported net profit in 3 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Eaton Vance Tax Advgd Gbl Div 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.
Next Steps
In conclusion, while Eaton Vance Tax Advgd Gbl Div Inc Fd has a consistent dividend payment history, it's essential to consider the company's dividend growth rate, payout ratio, profitability, and growth metrics. These factors play a crucial role in determining the sustainability of the dividend. Therefore, investors should thoroughly analyze these aspects before making an investment decision. 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.
