An In-depth Analysis of the Upcoming Dividend, Historical Trends, and Sustainability of Dividend Payments
Cohen & Steers Total Return Realty Fund Inc (RFI, Financial) recently announced a dividend of $0.08 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. 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 deep dive into Cohen & Steers Total Return Realty Fund Inc's dividend performance and assess its sustainability.
About Cohen & Steers Total Return Realty Fund Inc
Cohen & Steers Total Return Realty Fund Inc is a diversified, closed-end management investment company. Its investment objective is to achieve a high total return through investment in real estate securities. The Fund invests at least 75% of its total assets in the equity securities of real estate companies under normal circumstances, which includes common shares, rights or warrants, convertible securities, and preferred shares.
Cohen & Steers Total Return Realty Fund Inc's Dividend History
Cohen & Steers Total Return Realty Fund Inc has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Insights into Cohen & Steers Total Return Realty Fund Inc's Dividend Yield and Growth
As of today, Cohen & Steers Total Return Realty Fund Inc currently has a 12-month trailing dividend yield of 10.49% and a 12-month forward dividend yield of 8.77%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Cohen & Steers Total Return Realty Fund Inc's annual dividend growth rate was 8.50%. Extended to a five-year horizon, this rate decreased to 5.90% per year. Based on Cohen & Steers Total Return Realty Fund Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cohen & Steers Total Return Realty Fund Inc stock as of today is approximately 13.97%.
Can Cohen & Steers Total Return Realty Fund Inc Sustain Its Dividend Payments?
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, Cohen & Steers Total Return Realty Fund Inc's dividend payout ratio is 0.00.
Cohen & Steers Total Return Realty Fund Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cohen & Steers Total Return Realty Fund Inc's profitability 2 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 3 years out of past 10 years.
Future Growth Prospects
To ensure the sustainability of dividends, a company must have robust growth metrics. Cohen & Steers Total Return Realty Fund Inc'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
While Cohen & Steers Total Return Realty Fund Inc has a commendable history of dividend payments, its current dividend yield, growth rate, payout ratio, profitability, and growth metrics raise questions about the sustainability of its future dividends. Investors should consider these factors carefully before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
