Delving Into the Dividend Details of EXG
Eaton Vance Tax-Mgd Glbl Div Eq Inc (EXG, Financial) recently announced a dividend of $0.06 per share, payable on 2024-01-31, with the ex-dividend date set for 2024-01-22. 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 Eaton Vance Tax-Mgd Glbl Div Eq Inc's dividend performance and assess its sustainability.
What Does Eaton Vance Tax-Mgd Glbl Div Eq Inc Do?
Eaton Vance Tax-Mgd Glbl Div Eq Inc is a diversified, closed-end management investment company. Its primary investment objective is to provide current income and gains. The secondary objective of the fund is capital appreciation. It invests in a diversified portfolio of domestic and foreign common stocks with an emphasis on dividend-paying stocks and writes call options on one or more U.S. and foreign indices with respect to a portion of the value of its common stock portfolio to generate current cash flow from the options premium received. Its portfolio of investments consists of capital markets, banks, internet and direct marketing retail, biotechnology, media, oil, gas, and consumable fuels, and other sectors.
A Glimpse at Eaton Vance Tax-Mgd Glbl Div Eq Inc's Dividend History
Eaton Vance Tax-Mgd Glbl Div Eq Inc has maintained a consistent dividend payment record since 2007. 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-Mgd Glbl Div Eq Inc's Dividend Yield and Growth
As of today, Eaton Vance Tax-Mgd Glbl Div Eq Inc currently has a 12-month trailing dividend yield of 8.55% and a 12-month forward dividend yield of 8.55%. This suggests an expectation of the same dividend payments over the next 12 months. Over the past three years, Eaton Vance Tax-Mgd Glbl Div Eq Inc's annual dividend growth rate was -3.50%. Extended to a five-year horizon, this rate decreased to -3.70% per year. Based on Eaton Vance Tax-Mgd Glbl Div Eq Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Eaton Vance Tax-Mgd Glbl Div Eq Inc stock as of today is approximately 7.08%.
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 2023-10-31, Eaton Vance Tax-Mgd Glbl Div Eq Inc's dividend payout ratio is 0.78, and this may suggest that the company's dividend may not be sustainable. Eaton Vance Tax-Mgd Glbl Div Eq Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Eaton Vance Tax-Mgd Glbl Div Eq Inc's profitability 2 out of 10 as of 2023-10-31, suggesting the dividend may not be sustainable. The company has reported net profit in 5 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Eaton Vance Tax-Mgd Glbl Div Eq 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. Revenue is the lifeblood of any company, and Eaton Vance Tax-Mgd Glbl Div Eq Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Eaton Vance Tax-Mgd Glbl Div Eq Inc's revenue has increased by approximately 84.50% per year on average, a rate that outperforms approximately 92.68% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Eaton Vance Tax-Mgd Glbl Div Eq Inc's earnings increased by approximately 87.80% per year on average, a rate that outperforms approximately 93.82% of global competitors.
Concluding Thoughts on Eaton Vance Tax-Mgd Glbl Div Eq Inc's Dividend Profile
In conclusion, while Eaton Vance Tax-Mgd Glbl Div Eq Inc's high dividend yield is attractive, the negative dividend growth rate, low profitability rank, and payout ratio raise concerns about the long-term sustainability of its dividend payments. However, the strong revenue and earnings growth rates provide a glimmer of hope for future dividend stability. Investors should weigh these factors carefully and monitor the company's financial health and market conditions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find opportunities that align with their investment strategy.
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.
