Exploring the Dividend Performance and Sustainability of Nuveen Quality Municipal Income Fund
Nuveen Quality Municipal Income Fund(NAD, Financial) recently announced a dividend of $0.04 per share, payable on 2023-11-01, with the ex-dividend date set for 2023-10-12. Investors eagerly anticipate this upcoming payment, prompting a closer look at the company's dividend history, yield, and growth rates. Using data from GuruFocus, this article will delve into Nuveen Quality Municipal Income Fund's dividend performance and assess its sustainability.
Understanding Nuveen Quality Municipal Income Fund
Nuveen Quality Municipal Income Fund is a diversified, closed-end management investment company. The company's primary objective is to provide current income by investing in a portfolio of municipal obligations issued by state and local government authorities or certain U.S. territories.
Nuveen Quality Municipal Income Fund's Dividend History
Since 2017, Nuveen Quality Municipal Income Fund has maintained a consistent dividend payment record. The company currently distributes dividends on a monthly basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Nuveen Quality Municipal Income Fund's Dividend Yield and Growth
As of today, Nuveen Quality Municipal Income Fund has a 12-month trailing dividend yield of 4.80% and a 12-month forward dividend yield of 4.50%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Nuveen Quality Municipal Income Fund's annual dividend growth rate was 1.50%. When extended to a five-year horizon, this rate increased to 42.20% per year. As a result, the 5-year yield on cost of Nuveen Quality Municipal Income Fund stock as of today is approximately 27.91%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of Nuveen Quality Municipal Income Fund's dividend can be assessed by evaluating 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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-04-30, Nuveen Quality Municipal Income Fund's dividend payout ratio is 0.00.
Nuveen Quality Municipal Income Fund's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Nuveen Quality Municipal Income Fund's profitability 2 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 the past 10 years.
Future Outlook: Growth Metrics
Robust growth metrics are essential for the sustainability of dividends. Nuveen Quality Municipal 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 Nuveen Quality Municipal Income Fund has a history of consistent dividend payments, its low profitability and growth ranks suggest that the sustainability of these dividends may be in question. Investors should consider these factors when evaluating the company's future dividend prospects.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
