BlackRock Science and Technology Trust II's Dividend Analysis
An In-depth Look at BSTZ's Dividend Performance and Sustainability
BlackRock Science and Technology Trust II (NYSE:BSTZ) recently announced a dividend of $0.1 per share, payable on October 31, 2023, with the ex-dividend date set for October 13, 2023. As investors anticipate this upcoming payment, it is crucial to examine the company's dividend history, yield, and growth rates. This article will use GuruFocus data to delve into BlackRock Science and Technology Trust II's dividend performance and assess its sustainability.
Understanding BlackRock Science and Technology Trust II's Operations
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BlackRock Science and Technology Trust II is a non-diversified, closed-end management investment company. The trust's primary objectives are to deliver total return and income through a combination of current income, current gains, and long-term capital appreciation. Its portfolio includes Equity Securities, Options, Preferred Securities, Convertible Securities, Depositary Receipts, Non-U.S. Securities, Emerging Markets Investments, Restricted and Illiquid Investments, Private Company Investments, Corporate Bonds, and other investments.
BlackRock Science and Technology Trust II's Dividend History
Since 2019, BlackRock Science and Technology Trust II has maintained a consistent dividend payment record, with payments distributed on a monthly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Exploring BlackRock Science and Technology Trust II's Dividend Yield and Growth
As of today, BlackRock Science and Technology Trust II boasts a 12-month trailing dividend yield of 12.79% and a 12-month forward dividend yield of 7.64%. This indicates an expected decrease in dividend payments over the next 12 months.
Over the past three years, BlackRock Science and Technology Trust II's annual dividend growth rate was 56.60%. Based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of BlackRock Science and Technology Trust II stock is approximately 12.79% today.
Is BlackRock Science and Technology Trust II's Dividend Sustainable?
To assess the sustainability of the dividend, we need to examine the company's payout ratio. The dividend payout ratio reveals the proportion of earnings the company distributes as dividends. As of June 30, 2023, BlackRock Science and Technology Trust II's dividend payout ratio is 2.99, which may suggest that the company's dividend may not be sustainable.
BlackRock Science and Technology Trust II's profitability rank provides insight into the company's earnings prowess relative to its peers. As of June 30, 2023, GuruFocus ranks BlackRock Science and Technology Trust II's profitability 1 out of 10, suggesting that the dividend may not be sustainable. The company has reported net profit in 3 out of the past 10 years.
BlackRock Science and Technology Trust II's Growth Metrics
For a company to sustain its dividends, it must have robust growth metrics. However, BlackRock Science and Technology Trust II's growth rank of 1 out of 10 suggests that the company has poor growth prospects, which may affect the sustainability of its dividend.
Conclusion
While BlackRock Science and Technology Trust II has a commendable track record of consistent dividend payments, its low payout ratio, profitability rank, and growth metrics raise questions about the sustainability of its dividends. Therefore, investors should exercise caution and conduct thorough research 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.
