An In-depth Analysis of MEGI's Dividend Performance, Yield, and Growth
MainStay CBRE Global Infrastructure Megatrends Fund (MEGI, Financial) recently announced a dividend of $0.13 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-22. As investors eagerly anticipate this forthcoming payment, it's equally crucial to shed light on the company's dividend history, yield, and growth rates. Let's delve into MainStay CBRE Global Infrastructure Megatrends Fund's dividend performance and examine its sustainability using data from GuruFocus.
Overview of MainStay CBRE Global Infrastructure Megatrends Fund
MainStay CBRE Global Infrastructure Megatrends Fund operates as a non-diversified, closed-end management investment company. Its primary investment objective is to seek a high level of total return with an emphasis on current income.
Exploring MainStay CBRE Global Infrastructure Megatrends Fund's Dividend History
MainStay CBRE Global Infrastructure Megatrends Fund has upheld a consistent dividend payment record since 2022, with dividends currently distributed on a monthly basis.
The fund has increased its dividend each year since -, earning it the title of a dividend king. This distinction is bestowed upon companies that have consistently increased their dividend each year for at least the past 2023 years.
Dissecting MainStay CBRE Global Infrastructure Megatrends Fund's Dividend Yield and Growth
As of today, MainStay CBRE Global Infrastructure Megatrends Fund boasts a 12-month trailing dividend yield of 10.42% and a 12-month forward dividend yield of 10.56%. This implies an anticipated increase in dividend payments over the next 12 months.
With a dividend yield of 10.42%, close to a 10-year high, MainStay CBRE Global Infrastructure Megatrends Fund outperforms 82.72% of global competitors in the Asset Management industry. This suggests that the company's dividend yield is an enticing proposition for income investors.
Considering the fund's dividend yield and five-year growth rate, the 5-year yield on cost of MainStay CBRE Global Infrastructure Megatrends Fund stock stands at approximately 10.42% as of today.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend is determined by evaluating the company's payout ratio. The dividend payout ratio reveals 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, MainStay CBRE Global Infrastructure Megatrends Fund's dividend payout ratio is 0.00.
As of 2023-05-31, MainStay CBRE Global Infrastructure Megatrends Fund's profitability rank is 1 out of 10, suggesting that the dividend may not be sustainable. The company has reported net profit in 0 years out of the past 10 years.
Assessing Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. MainStay CBRE Global Infrastructure Megatrends Fund's growth rank of 1 out of 10 indicates that the company has poor growth prospects, suggesting that the dividend may not be sustainable.
Conclusion
While MainStay CBRE Global Infrastructure Megatrends Fund's dividend yield and consistent dividend payment record are commendable, its low profitability and growth ranks raise questions about the sustainability of its dividends. Investors should therefore approach this stock with a balanced view, considering both its attractive dividend yield and potential risks.
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