A Comprehensive Analysis of the Company's Dividend History, Yield, and Sustainability
Special Opportunities Fund Inc (SPE, Financial) recently announced a dividend of $0.09 per share, scheduled for payment on October 31, 2023, with the ex-dividend date set for October 19, 2023. As investors eagerly await this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. This article, using data from GuruFocus, provides a detailed analysis of Special Opportunities Fund Inc's dividend performance and its sustainability.
Understanding Special Opportunities Fund Inc
Special Opportunities Fund Inc is a diversified management investment company based in the United States. The company aims to achieve total return on its investments. Its portfolio comprises investment companies, common stocks, money market funds, commodity partnerships, preferred stocks, and other investment types. It also invests in various sectors, including construction materials, consumer finance, healthcare equipment, and real estate investment trusts, among others.
Tracing Special Opportunities Fund Inc's Dividend History
Since 2015, Special Opportunities Fund Inc has consistently paid out dividends on a monthly basis. The company's annual Dividends Per Share chart below provides a historical perspective of its dividend payouts.
Exploring Special Opportunities Fund Inc's Dividend Yield and Growth
As of the current date, Special Opportunities Fund Inc has a 12-month trailing dividend yield of 10.09% and a 12-month forward dividend yield of 9.25%. This indicates an anticipated decrease in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 18.60%, and this rate has remained consistent over a five-year period. Consequently, the 5-year yield on cost of Special Opportunities Fund Inc's stock stands at approximately 23.42% as of today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio of Special Opportunities Fund Inc, standing at 1.01 as of June 30, 2023, provides valuable insights into the sustainability of its dividends. This ratio suggests that the company's dividend may not be sustainable. Furthermore, the company's profitability rank of 2 out of 10 indicates that its earnings capabilities relative to its peers may not be sufficient to sustain its dividends.
Future Outlook: Growth Metrics
For dividends to be sustainable, robust growth metrics are essential. However, Special Opportunities Fund Inc's growth rank of 2 out of 10 suggests poor growth prospects, raising concerns about the sustainability of its dividends.
Conclusion
In conclusion, while Special Opportunities Fund Inc has a consistent history of dividend payments, its current payout ratio and growth metrics raise questions about the sustainability of its 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.
