An In-Depth Look at ETY's Dividend Performance and Prospects
Eaton Vance Tax-mgd Dvsf Eq Inc Fd (ETY, Financial) recently announced a dividend of $0.08 per share, payable on 2024-01-31, with the ex-dividend date set for 2024-01-22. 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-mgd Dvsf Eq Inc Fds 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. Its portfolio of investments consists of capital markets, banks, internet and direct marketing retail, biotechnology, media, oil, gas, and 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. 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-mgd Dvsf Eq Inc Fd's Dividend Yield and Growth
As of today, Eaton Vance Tax-mgd Dvsf Eq Inc Fd currently has a 12-month trailing dividend yield of 7.88% and a 12-month forward dividend yield of 7.88%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Eaton Vance Tax-mgd Dvsf Eq Inc Fd's annual dividend growth rate was -1.50%. Extended to a five-year horizon, this rate increased to 0.20% per year. Based on Eaton Vance Tax-mgd Dvsf Eq Inc Fd's 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 7.96%.
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 2023-10-31, Eaton Vance Tax-mgd Dvsf Eq Inc Fd's dividend payout ratio is 0.76, which may suggest that the company's dividend may not be sustainable.
Eaton Vance Tax-mgd Dvsf Eq Inc Fd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Eaton Vance Tax-mgd Dvsf Eq Inc Fd's profitability 2 out of 10 as of 2023-10-31, suggesting the dividend may not be sustainable. The company has reported net profit in 6 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. However, Eaton Vance Tax-mgd Dvsf Eq Inc Fd's revenue has increased by approximately 19.30% per year on average, a rate that outperforms approximately 69.54% 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, Eaton Vance Tax-mgd Dvsf Eq Inc Fd's earnings increased by approximately 19.50% per year on average, a rate that outperforms approximately 63.24% of global competitors.
Concluding Thoughts on Eaton Vance Tax-mgd Dvsf Eq Inc Fd's Dividend Prospects
In conclusion, while Eaton Vance Tax-mgd Dvsf Eq Inc Fd has demonstrated a strong history of dividend payments, concerns about its profitability and growth ranks could raise questions about the long-term sustainability of its dividends. The robust revenue and EPS growth rates, however, provide a counterbalance that may reassure investors about the fund's potential for maintaining its dividend payments. Investors seeking high-dividend yield opportunities can further explore their options with the High Dividend Yield Screener available to GuruFocus Premium users. As Eaton Vance Tax-mgd Dvsf Eq Inc Fd approaches its next dividend date, investors would do well to consider both the risks and growth prospects before making a decision.
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.
