Exploring Dividend Performance, Sustainability, and Growth Prospects
Clough Global Opportunities Fund (GLO, Financial) recently announced a dividend of $0.05 per share, payable on 2023-11-30, with the ex-dividend date set for 2023-11-16. 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 delve into Clough Global Opportunities Fund's dividend performance and assess its sustainability.
What Does Clough Global Opportunities Fund Do?
Clough Global Opportunities Fund is a closed-end management investment company based in the United States. Its investment objective is to provide a high level of total return. The fund invests in a mix of U.S. and non-U.S. equity and debt securities.
A Glimpse at Clough Global Opportunities Fund's Dividend History
Clough Global Opportunities Fund has maintained a consistent dividend payment record since 2006. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Clough Global Opportunities Fund's Dividend Yield and Growth
As of today, Clough Global Opportunities Fund currently has a 12-month trailing dividend yield of 16.12% and a 12-month forward dividend yield of 13.03%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Clough Global Opportunities Fund's annual dividend growth rate was 3.30%. Extended to a five-year horizon, this rate decreased to 1.60% per year. And over the past decade, Clough Global Opportunities Fund's annual dividends per share growth rate stands at -0.10%.
Based on Clough Global Opportunities Fund's dividend yield and five-year growth rate, the 5-year yield on cost of Clough Global Opportunities Fund stock as of today is approximately 17.45%.
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, Clough Global Opportunities Fund's dividend payout ratio is 0.00.
Clough Global Opportunities Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Clough Global Opportunities Fund'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 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Clough Global Opportunities Fund's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Next Steps
Based on the analysis of Clough Global Opportunities Fund's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, it appears that the company's dividends may face sustainability issues in the future. Investors should consider these factors when making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
