Alliancebernstein National Muni Inc Fd (AFB): An In-Depth Look at Its Dividend Performance
Unraveling the Dividend History, Yield, and Sustainability of AFB
Alliancebernstein National Muni Inc Fd (NYSE:AFB) recently announced a dividend of $0.03 per share, payable on 2023-10-20, with the ex-dividend date set for 2023-10-05. 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 deep dive into Alliancebernstein National Muni Inc Fd's dividend performance and assess its sustainability.
Understanding Alliancebernstein National Muni Inc Fd
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Alliancebernstein National Muni Inc Fd is a diversified, closed-end management investment company. It seeks to provide high current income exempt from regular federal income tax by investing substantially all of its net assets in municipal securities that pay interest that is exempt from federal income tax.
Alliancebernstein National Muni Inc Fd's Dividend Track Record
Alliancebernstein National Muni Inc Fd has maintained a consistent dividend payment record since 2002. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Decoding Alliancebernstein National Muni Inc Fd's Dividend Yield and Growth
As of today, Alliancebernstein National Muni Inc Fd currently has a 12-month trailing dividend yield of 4.46% and a 12-month forward dividend yield of 4.20%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Alliancebernstein National Muni Inc Fd's annual dividend growth rate was 1.30%. Extended to a five-year horizon, this rate decreased to -0.10% per year. Based on Alliancebernstein National Muni Inc Fd's dividend yield and five-year growth rate, the 5-year yield on cost of Alliancebernstein National Muni Inc Fd stock as of today is approximately 4.44%.
Is Alliancebernstein National Muni Inc Fd's Dividend Sustainable?
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, Alliancebernstein National Muni Inc Fd's dividend payout ratio is 0.00.
Alliancebernstein National Muni Inc Fd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Alliancebernstein National Muni Inc Fd'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 past 10 years.
Alliancebernstein National Muni Inc Fd's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Alliancebernstein National Muni Inc Fd's growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Final Thoughts
Considering Alliancebernstein National Muni Inc Fd's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors should proceed with caution. The company's low profitability and growth ranks suggest potential challenges in maintaining its dividend payments. Therefore, careful assessment and monitoring of the company's performance are crucial for investors seeking dividend returns.
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This article first appeared on GuruFocus.
