An In-depth Analysis of the Company's Dividend Performance and Future Prospects
Cohen & Steers REIT and Preferred Income Fund Inc (RNP, Financial) has recently announced a dividend of $0.14 per share, to be paid on 2023-09-29, with the ex-dividend date set for 2023-09-12. This news has turned the investor's focus towards the company's dividend history, yield, and growth rates. This article will utilize GuruFocus data to provide a comprehensive analysis of Cohen & Steers REIT and Preferred Income Fund Inc's dividend performance and its sustainability.
Overview of Cohen & Steers REIT and Preferred Income Fund Inc
Cohen & Steers REIT and Preferred Income Fund Inc is a diversified, closed-ended investment management fund. The Fund's primary goal is to generate high current income, with capital appreciation as a secondary objective. Under normal circumstances, at least 80% of its total assets are invested in common stocks issued by real estate investment trusts (REITs) and preferred securities.
Historical Dividend Performance of Cohen & Steers REIT and Preferred Income Fund Inc
Since 2003, Cohen & Steers REIT and Preferred Income Fund Inc has established a consistent record of dividend payments, currently distributed on a monthly basis. The following chart provides a historical view of the annual Dividends Per Share.
Analysis of Cohen & Steers REIT and Preferred Income Fund Inc's Dividend Yield and Growth
At present, Cohen & Steers REIT and Preferred Income Fund Inc has a 12-month trailing dividend yield of 8.85% and a 12-month forward dividend yield of 8.85%. This indicates an expectation of consistent dividend payments over the next 12 months.
In the past three years, the company's annual dividend growth rate was 3.10%. However, this rate decreased to 1.30% per year when extended to a five-year horizon. Considering the dividend yield and five-year growth rate, the 5-year yield on cost of Cohen & Steers REIT and Preferred Income Fund Inc stock is roughly 9.44% as of today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio is a crucial measure to evaluate the sustainability of a company's dividend. A lower ratio indicates that the company retains a significant portion of its earnings, providing a safety net for future growth and unexpected downturns. As of 2023-06-30, Cohen & Steers REIT and Preferred Income Fund Inc's dividend payout ratio stands at 0.00.
The profitability rank of Cohen & Steers REIT and Preferred Income Fund Inc, as per GuruFocus, is 2 out of 10 as of 2023-06-30. This indicates a weak profitability compared to its peers, raising questions about the sustainability of its dividend. The company has reported net profit in 4 out of the past 10 years.
Future Growth Prospects
For dividends to be sustainable, a company must demonstrate robust growth metrics. However, Cohen & Steers REIT and Preferred Income Fund Inc's growth rank of 2 out of 10 suggests weak growth prospects, which could potentially impact the sustainability of its dividend.
Conclusion
While Cohen & Steers REIT and Preferred Income Fund Inc has a commendable dividend history, its low profitability and growth ranks raise concerns about the sustainability of its dividend payments. Investors should closely monitor these factors alongside the company's dividend growth rate and payout ratio.
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