A Comprehensive Review of ETO's Dividend Performance and Sustainability
Eaton Vance Tax-advtgd Global Divid Oppo (ETO, Financial) recently announced a dividend of $0.14 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-21. 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 Eaton Vance Tax-advtgd Global Divid Oppo's dividend performance and assess its sustainability.
What Does Eaton Vance Tax-advtgd Global Divid Oppo Do?
Eaton Vance Tax-advtgd Global Divid Oppo is a diversified, closed-end management investment company. Its investment objective is to provide a high level of after-tax total return consisting of tax-advantaged dividend income and capital appreciation. The fund pursues its objective by investing primarily in dividend-paying common and preferred stocks. The portfolio of investments consists of capital markets, chemicals, diversified, beverages, banks, electric utilities, oil, gas and consumable fuels, personal products, and other areas.
A Glimpse at Eaton Vance Tax-advtgd Global Divid Oppo's Dividend History
Eaton Vance Tax-advtgd Global Divid Oppo has maintained a consistent dividend payment record since 2004. 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-advtgd Global Divid Oppo's Dividend Yield and Growth
As of today, Eaton Vance Tax-advtgd Global Divid Oppo currently has a 12-month trailing dividend yield of 7.78% and a 12-month forward dividend yield of 7.41%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Eaton Vance Tax-advtgd Global Divid Oppo's annual dividend growth rate was -0.20%. Extended to a five-year horizon, this rate decreased to -1.80% per year. Based on Eaton Vance Tax-advtgd Global Divid Oppo's dividend yield and five-year growth rate, the 5-year yield on cost of Eaton Vance Tax-advtgd Global Divid Oppo stock as of today is approximately 7.10%.
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 2023-04-30, Eaton Vance Tax-advtgd Global Divid Oppo's dividend payout ratio is 3.23. This may suggest that the company's dividend may not be sustainable.
Eaton Vance Tax-advtgd Global Divid Oppo's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Eaton Vance Tax-advtgd Global Divid Oppo's profitability 3 out of 10 as of 2023-04-30, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Eaton Vance Tax-advtgd Global Divid Oppo's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Conclusion
With a consistent dividend payment record, Eaton Vance Tax-advtgd Global Divid Oppo presents an attractive option for dividend investors. However, its negative dividend growth rate, high payout ratio, and low profitability and growth ranks suggest that its dividends may not be sustainable in the long run. It is crucial for investors to consider these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
