Assessing the Dividend Performance of AIO
AllianzGI Artificial Intelligence & Technology Opportunities Fund (AIO, Financial) recently announced a dividend of $0.15 per share, payable on 2024-02-28, with the ex-dividend date set for 2024-02-09. 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 AllianzGI Artificial Intelligence & Technology Opportunities Fund's dividend performance and assess its sustainability.
What Does AllianzGI Artificial Intelligence & Technology Opportunities Fund Do?
AllianzGI Artificial Intelligence & Technology Opportunities Fund is a newly organized, diversified, limited term closed-end management investment company. The fund's investment objective is to provide total return through a combination of current income, current gains, and long-term capital appreciation.
A Glimpse at AllianzGI Artificial Intelligence & Technology Opportunities Fund's Dividend History
AllianzGI Artificial Intelligence & Technology Opportunities Fund has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a monthly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down AllianzGI Artificial Intelligence & Technology Opportunities Fund's Dividend Yield and Growth
As of today, AllianzGI Artificial Intelligence & Technology Opportunities Fund currently has a 12-month trailing dividend yield of 9.10% and a 12-month forward dividend yield of 9.10%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, AllianzGI Artificial Intelligence & Technology Opportunities Fund's annual dividend growth rate was 76.90%. Based on AllianzGI Artificial Intelligence & Technology Opportunities Fund's dividend yield and five-year growth rate, the 5-year yield on cost of AllianzGI Artificial Intelligence & Technology Opportunities Fund stock as of today is approximately 9.10%.
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 2023-01-31, AllianzGI Artificial Intelligence & Technology Opportunities Fund's dividend payout ratio is 0.00.
AllianzGI Artificial Intelligence & Technology Opportunities Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks AllianzGI Artificial Intelligence & Technology Opportunities Fund's profitability 2 out of 10 as of 2023-01-31, suggesting the dividend may not be sustainable. The company has reported net profit in 2 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. AllianzGI Artificial Intelligence & Technology Opportunities 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.
Next Steps
In conclusion, while AllianzGI Artificial Intelligence & Technology Opportunities Fund offers an attractive dividend yield and has shown significant dividend growth in the past, the sustainability of its dividends is questionable due to a low profitability rank and concerning growth prospects. Investors should be cautious and consider these factors alongside the company's future potential and broader market conditions. For those seeking income-generating investments, it is important to balance yield with stability and growth potential. 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.
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