Unpacking the Dividend History, Yield, and Growth Rates of Mfs Intermediate High Income Fund
Mfs Intermediate High Income Fund (CIF, Financial) recently announced a dividend of $0.01 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 Mfs Intermediate High Income Funds dividend performance and assess its sustainability.
About Mfs Intermediate High Income Fund
Mfs Intermediate High Income Fund is a United States based diversified closed-end management investment company. Its investment objective is to seek high current income but may also consider capital appreciation. The fund invests a majority of its net assets, including borrowings for investment purposes, in high-income debt instruments. Its portfolio of investments includes investment in different sectors such as aerospace, automotive, broadcasting, building, business services, cable TV, chemicals, construction, and other sectors.
Mfs Intermediate High Income Fund's Dividend History
Mfs Intermediate High Income Fund has maintained a consistent dividend payment record since 1988. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Mfs Intermediate High Income Fund's Dividend Yield and Growth
As of today, Mfs Intermediate High Income Fund currently has a 12-month trailing dividend yield of 10.46% and a 12-month forward dividend yield of 10.39%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Mfs Intermediate High Income Fund's annual dividend growth rate was -7.50%. Extended to a five-year horizon, this rate increased to -5.60% per year. Based on Mfs Intermediate High Income Fund's dividend yield and five-year growth rate, the 5-year yield on cost of Mfs Intermediate High Income Fund stock as of today is approximately 7.84%.
Assessing Dividend Sustainability: 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 2023-05-31, Mfs Intermediate High Income Fund's dividend payout ratio is 0.00.
Mfs Intermediate High Income Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Mfs Intermediate High Income Fund's profitability 2 out of 10 as of 2023-05-31, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of past 10 years.
Examining Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Mfs Intermediate High Income Fund'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
In conclusion, while Mfs Intermediate High Income Fund has a commendable record of consistent dividend payments, its negative dividend growth rate, low profitability rank, and poor growth rank raise questions about the sustainability of its dividends. Investors might need to reconsider their expectations of future dividend payments from Mfs Intermediate High Income Fund.
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