Assessing the Sustainability of Nuveen Mortgage And Income Fund's Dividend Payments
Nuveen Mortgage And Income Fund (JLS, Financial) recently announced a dividend of $0.06 per share, payable on 2023-12-29, with the ex-dividend date set for 2023-12-26. 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 Nuveen Mortgage And Income Fund's dividend performance and assess its sustainability.
What Does Nuveen Mortgage And Income Fund Do?
Nuveen Mortgage And Income Fund is a diversified, closed-end management investment company. Its investment objective is to generate high current income through opportunistic investments in securitized credit.
A Glimpse at Nuveen Mortgage And Income Fund's Dividend History
Nuveen Mortgage And Income Fund has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Nuveen Mortgage And Income Fund's Dividend Yield and Growth
As of today, Nuveen Mortgage And Income Fund currently has a 12-month trailing dividend yield of 8.87% and a 12-month forward dividend yield of 9.99%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Nuveen Mortgage And Income Fund's dividend yield and five-year growth rate, the 5-year yield on cost of Nuveen Mortgage And Income Fund stock as of today is approximately 8.87%.
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 2023-06-30, Nuveen Mortgage And Income Fund's dividend payout ratio is 0.00.
Nuveen Mortgage And Income Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Nuveen Mortgage And Income Fund'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 2 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. Nuveen Mortgage And Income Fund's growth rank of 1 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Next Steps
In light of Nuveen Mortgage And Income Fund's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors should approach the stock with caution. The high dividend yield may be attractive, but the company's low profitability and growth ranks raise questions about the long-term sustainability of these payments. It is crucial for investors to consider these factors alongside their investment strategy and risk tolerance. For those seeking high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener for more informed investment decisions.
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.
