Delving into DoubleLine Yield Opportunities Fund's Dividend Performance
A Comprehensive Analysis of DLY's Dividend History, Yield, and Sustainability
DoubleLine Yield Opportunities Fund (NYSE:DLY) recently announced a dividend of $0.12 per share, slated for payment on 2023-09-29, with the ex-dividend date set for 2023-09-13. As investors eagerly anticipate this forthcoming payment, attention is also drawn towards the company's dividend history, yield, and growth rates. Utilizing GuruFocus data, we delve into DoubleLine Yield Opportunities Fund's dividend performance and evaluate its sustainability.
Understanding DoubleLine Yield Opportunities Fund
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DoubleLine Yield Opportunities Fund operates as a non-diversified, limited-term, closed-end management investment company. The Fund's primary objective is to seek a high level of total return, with a strong emphasis on current income.
Exploring DoubleLine Yield Opportunities Fund's Dividend History
Since 2021, DoubleLine Yield Opportunities Fund has upheld a consistent dividend payment record, with dividends currently disbursed on a monthly basis. The chart below provides a historical overview of annual Dividends Per Share.
Examining DoubleLine Yield Opportunities Fund's Dividend Yield and Growth
As of today, DoubleLine Yield Opportunities Fund boasts a 12-month trailing dividend yield and a 12-month forward dividend yield of 9.46%, suggesting consistent dividend payments over the next 12 months. Considering DoubleLine Yield Opportunities Fund's dividend yield and five-year growth rate, the 5-year yield on cost of the company's stock stands at approximately 9.46%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
Examining the dividend payout ratio is crucial in evaluating dividend sustainability. This ratio reveals the proportion of earnings the company allocates as dividends. A lower ratio suggests that the company retains a significant portion of its earnings, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-03-31, DoubleLine Yield Opportunities Fund's dividend payout ratio is 0.00.
DoubleLine Yield Opportunities Fund's profitability rank provides insights into the company's earnings prowess relative to its peers. GuruFocus ranks DoubleLine Yield Opportunities Fund's profitability 2 out of 10 as of 2023-03-31, suggesting the dividend may not be sustainable. The company has reported net profit in 1 year out of the past 10 years.
Future Prospects: Growth Metrics
For dividends to be sustainable, robust growth metrics are essential. DoubleLine Yield Opportunities Fund's growth rank of 2 out of 10 suggests that the company has poor growth prospects, indicating that the dividend may not be sustainable in the long term.
Conclusion
While DoubleLine Yield Opportunities Fund's consistent dividend payments and high yield may seem attractive, the low profitability and growth ranks raise questions about the sustainability of these dividends. Investors must 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 first appeared on GuruFocus.
