Blackrock Muniholdings Fund Inc's Dividend Analysis
Assessing Dividend Performance and Future Prospects of Blackrock Muniholdings Fund Inc
Blackrock Muniholdings Fund Inc(NYSE:MHD) recently announced a dividend of $0.04 per share, payable on 2023-11-01, with the ex-dividend date set for 2023-10-13. 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 Blackrock Muniholdings Fund Inc's dividend performance and assess its sustainability.
Understanding Blackrock Muniholdings Fund Inc
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Blackrock Muniholdings Fund Inc is a closed-end management investment company. The fund's objective is to provide shareholders with current income exempt from U.S. federal income taxes. The company invests in Transportation, Health, Utilities, Education, Housing, and other sectors.
Blackrock Muniholdings Fund Inc's Dividend History
Blackrock Muniholdings Fund Inc has maintained a consistent dividend payment record since 1997. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Blackrock Muniholdings Fund Inc's Dividend Yield and Growth
As of today, Blackrock Muniholdings Fund Inc currently has a 12-month trailing dividend yield of 4.48% and a 12-month forward dividend yield of 4.09%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Blackrock Muniholdings Fund Inc's annual dividend growth rate was -9.80%. Based on Blackrock Muniholdings Fund Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Blackrock Muniholdings Fund Inc stock as of today is approximately 4.48%.
Assessing Dividend Sustainability: 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, Blackrock Muniholdings Fund Inc's dividend payout ratio is 0.00.
Blackrock Muniholdings Fund Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Blackrock Muniholdings Fund Inc'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 3 years out of past 10 years.
Examining Growth Metrics for Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Blackrock Muniholdings 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.
Revenue is the lifeblood of any company, and Blackrock Muniholdings Fund Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Blackrock Muniholdings Fund Inc's revenue has increased by approximately 26.60% per year on average, a rate that outperforms than approximately 76.61% 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, Blackrock Muniholdings Fund Inc's earnings increased by approximately 74.00% per year on average, a rate that outperforms than approximately 91.07% of global competitors.
Conclusion
In conclusion, despite the consistent dividend payments and impressive revenue and EPS growth rates, the low profitability and growth ranks cast a shadow on the sustainability of Blackrock Muniholdings Fund Inc's dividends. The company's future dividend payments will likely be influenced by its ability to improve its profitability and growth prospects. Investors are encouraged to keep a close eye on these metrics when considering Blackrock Muniholdings Fund Inc as a potential dividend investment.
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.
This article first appeared on GuruFocus.
