Assessing the Upcoming Dividend and Financial Health of Brookfield Real Assets Income Fund Inc.
Brookfield Real Assets Income Fund Inc. (RA, Financial) recently announced a dividend of $0.12 per share, payable on 2024-02-22, with the ex-dividend date set for 2024-02-06. 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 look into Brookfield Real Assets Income Fund Inc.'s dividend performance and assess its sustainability.
What Does Brookfield Real Assets Income Fund Inc. Do?
Brookfield Real Assets Income Fund Inc. is a diversified, closed-end management investment company. Its investment objective is to seek a high total return, through high current income and secondarily, through the growth of capital. The Fund seeks to achieve its investment objective by investing in the real asset class, which includes Real Estate Securities, Infrastructure Securities, and Natural Resources Securities (collectively, Real Asset Companies and Issuers). The Firm manages separate accounts, registered funds, and opportunistic strategies for institutional and individual clients, including financial institutions, public and private pension plans, insurance companies, endowments and foundations, sovereign wealth funds, and high-net-worth investors.
A Glimpse at Brookfield Real Assets Income Fund Inc.'s Dividend History
Brookfield Real Assets Income Fund Inc. has maintained a consistent dividend payment record since 2016, with dividends currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Brookfield Real Assets Income Fund Inc.'s Dividend Yield and Growth
As of today, Brookfield Real Assets Income Fund Inc. has a 12-month trailing dividend yield of 16.35% and a 12-month forward dividend yield of 14.50%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Brookfield Real Assets Income Fund Inc.'s dividend yield and five-year growth rate, the 5-year yield on cost of Brookfield Real Assets Income Fund Inc. stock as of today is approximately 16.35%.
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 2023-06-30, Brookfield Real Assets Income Fund Inc.'s dividend payout ratio is 4.34, which may suggest that the company's dividend may not be sustainable.
Brookfield Real Assets Income Fund Inc.'s profitability rank of 2 out of 10 as of 2023-06-30, suggests that the dividend may not be sustainable, considering the company has reported net profit in only 3 out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Brookfield Real Assets Income Fund Inc.'s growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Next Steps
In conclusion, while Brookfield Real Assets Income Fund Inc. offers a high trailing dividend yield, the company's financial health raises questions about the sustainability of its dividend payments. The low profitability and growth ranks, combined with a potentially misleading payout ratio, suggest that investors should exercise caution. It's crucial for investors to consider whether the high yield compensates for the risks associated with the underlying financial metrics. For those seeking to discover similar investment opportunities, 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.
