Credit Suisse Asset Mgmt Income Fund Inc's Dividend Analysis
An In-depth Look Into CIK's Dividend Performance and Sustainability
Credit Suisse Asset Mgmt Income Fund Inc (CIK) recently announced a dividend of $0.02 per share, payable on 2023-10-24, with the ex-dividend date set for 2023-10-17. 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 Credit Suisse Asset Mgmt Income Fund Inc's dividend performance and assess its sustainability.
What Does Credit Suisse Asset Mgmt Income Fund Inc Do?
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Credit Suisse Asset Mgmt Income Fund Inc is a closed-end management investment company. The investment objective of the fund is to provide current income consistent with the preservation of capital. Credit Suisse serves as an investment adviser for the fund. Asset Management offers a wide range of investment products and functions across asset classes and investment styles. The division manages global and regional portfolios, mutual funds, and other investment vehicles for governments, institutions, corporations, and individuals.
A Glimpse at Credit Suisse Asset Mgmt Income Fund Inc's Dividend History
Credit Suisse Asset Mgmt Income Fund Inc has maintained a consistent dividend payment record since 1988. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Credit Suisse Asset Mgmt Income Fund Inc's Dividend Yield and Growth
As of today, Credit Suisse Asset Mgmt Income Fund Inc currently has a 12-month trailing dividend yield of 10.47% and a 12-month forward dividend yield of 10.47%. This suggests an expectation of same dividend payments over the next 12 months.
Extended to a five-year horizon, this rate increased to 0.40% per year. And over the past decade, Credit Suisse Asset Mgmt Income Fund Inc's annual dividends per share growth rate stands at -1.40%. Based on Credit Suisse Asset Mgmt Income Fund Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Credit Suisse Asset Mgmt Income Fund Inc stock as of today is approximately 10.68%.
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 2023-06-30, Credit Suisse Asset Mgmt Income Fund Inc's dividend payout ratio is 0.84. This may suggest that the company's dividend may not be sustainable.
Credit Suisse Asset Mgmt Income Fund Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Credit Suisse Asset Mgmt Income Fund Inc's profitability 3 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Credit Suisse Asset Mgmt Income Fund Inc's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Next Steps
Given the current dividend yield, growth rate, payout ratio, and profitability rank, potential investors should consider these factors in their decision-making process. While Credit Suisse Asset Mgmt Income Fund Inc has a long-standing history of dividend payments, the recent data suggests that its dividends may not be sustainable in the long term. Therefore, investors should carefully consider their investment strategy and risk tolerance before investing in Credit Suisse Asset Mgmt Income Fund Inc.
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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.
