Deep Dive into Pioneer Municipal High Income Trust's Dividend Performance
An In-depth Analysis of the Trust's Dividend History, Yield, and Growth
Pioneer Municipal High Income Trust (NYSE:MHI) recently announced a dividend of $0.03 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-19. 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 Pioneer Municipal High Income Trusts dividend performance and assess its sustainability.
Understanding Pioneer Municipal High Income Trust
Pioneer Municipal High Income Trust is a diversified, closed-end management investment company. Its investment objective is to seek a high level of current income exempt from regular federal income tax and capital appreciation. The trust invests in various sectors such as health, education, tobacco, facilities, transportation, utilities, airport, water, and other sectors.
A Look at Pioneer Municipal High Income Trust's Dividend History
Pioneer Municipal High Income Trust has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dissecting Pioneer Municipal High Income Trust's Dividend Yield and Growth
As of today, Pioneer Municipal High Income Trust currently has a 12-month trailing dividend yield of 6.18% and a 12-month forward dividend yield of 5.92%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Pioneer Municipal High Income Trust's annual dividend growth rate was -3.10%. Extended to a five-year horizon, this rate decreased to -4.90% per year.
Based on Pioneer Municipal High Income Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Pioneer Municipal High Income Trust stock as of today is approximately 4.82%.
Can Pioneer Municipal High Income Trust's Dividend Be Sustained?
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, Pioneer Municipal High Income Trust's dividend payout ratio is 0.00.
Pioneer Municipal High Income Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Pioneer Municipal High Income Trust'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.
Is There Growth Potential for Pioneer Municipal High Income Trust?
To ensure the sustainability of dividends, a company must have robust growth metrics. Pioneer Municipal High Income Trust'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 Pioneer Municipal High Income Trust has a consistent dividend payment record, its negative growth rates, low profitability rank, and poor growth metrics raise concerns about the sustainability of its dividends. Investors should 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 first appeared on GuruFocus.
