BLACKROCK MUNIYIELD QUALITY FUND III, INC.'s Dividend Analysis
Examining the Fund's Dividend History, Yield, and Sustainability
BLACKROCK MUNIYIELD QUALITY FUND III, INC.(NYSE:MYI) 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 MUNIYIELD QUALITY FUND III, INC.'s dividend performance and assess its sustainability.
What Does BLACKROCK MUNIYIELD QUALITY FUND III, INC. Do?
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BLACKROCK MUNIYIELD QUALITY FUND III, INC. is a diversified, closed-ended investment management company. Its investment objective is to provide shareholders with a high level of current income exempt from U.S. federal income taxes as is consistent with its investment policies and prudent investment management. The company invests in various sectors such as Transportation; Utilities; Health; Education; Tobacco and others.
A Glimpse at BLACKROCK MUNIYIELD QUALITY FUND III, INC.'s Dividend History
BLACKROCK MUNIYIELD QUALITY FUND III, INC. has maintained a consistent dividend payment record since 1992. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down BLACKROCK MUNIYIELD QUALITY FUND III, INC.'s Dividend Yield and Growth
As of today, BLACKROCK MUNIYIELD QUALITY FUND III, INC. currently has a 12-month trailing dividend yield of 5.03% and a 12-month forward dividend yield of 5.03%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, BLACKROCK MUNIYIELD QUALITY FUND III, INC.'s annual dividend growth rate was 1.30%. Extended to a five-year horizon, this rate decreased to -5.50% per year. Based on BLACKROCK MUNIYIELD QUALITY FUND III, INC.'s dividend yield and five-year growth rate, the 5-year yield on cost of BLACKROCK MUNIYIELD QUALITY FUND III, INC. stock as of today is approximately 3.79%.
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, BLACKROCK MUNIYIELD QUALITY FUND III, INC.'s dividend payout ratio is 0.00.
BLACKROCK MUNIYIELD QUALITY FUND III, INC.'s profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks BLACKROCK MUNIYIELD QUALITY FUND III, 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 4 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. BLACKROCK MUNIYIELD QUALITY FUND III, 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.
Conclusion
While BLACKROCK MUNIYIELD QUALITY FUND III, INC. has a long history of consistent dividend payments, the company's low profitability and growth ranks raise concerns about the sustainability of its dividends in the long run. Investors should carefully consider these factors before making investment decisions. 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.
