DoubleLine Income Solutions Fund's Dividend Analysis
An In-depth Look at the Dividend Performance and Sustainability of DoubleLine Income Solutions Fund
DoubleLine Income Solutions Fund (NYSE:DSL) recently announced a dividend of $0.11 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-11. As investors anticipate this forthcoming payment, the focus also turns to the company's dividend history, yield, and growth rates. Using data from GuruFocus, we delve into DoubleLine Income Solutions Fund's dividend performance and evaluate its sustainability.
Understanding DoubleLine Income Solutions Fund
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DoubleLine Income Solutions Fund is a closed-end fund. Its primary investment objective is to seek high income while its secondary objective is to seek capital appreciation. The fund invests in various securities, including money market funds, foreign corporate bonds, US corporate bonds, bank loans, collateralized loan obligations, and municipal bonds. The fund's portfolio spans across various industries such as Healthcare, Technology, Construction, Automotive, Insurance, Beverage, Pharmaceuticals, Leisure, and more.
A Look at DoubleLine Income Solutions Fund's Dividend History
DoubleLine Income Solutions Fund has maintained a consistent dividend payment record since 2014. The dividends are currently distributed on a monthly basis. The chart below illustrates annual Dividends Per Share to track historical trends.
Assessing DoubleLine Income Solutions Fund's Dividend Yield and Growth
As of today, DoubleLine Income Solutions Fund has a 12-month trailing dividend yield of 11.81% and a 12-month forward dividend yield of 11.81%, indicating an expectation of consistent dividend payments over the next 12 months.
Over the past three years, the annual dividend growth rate of DoubleLine Income Solutions Fund was -9.80%, which increased to -6.60% per year when extended to a five-year horizon. Based on the fund's dividend yield and five-year growth rate, the 5-year yield on cost of DoubleLine Income Solutions Fund stock as of today is approximately 8.39%.
The Sustainability of DoubleLine Income Solutions Fund's Dividend
To evaluate the sustainability of the dividend, the company's dividend payout ratio is a critical factor. As of 2023-03-31, DoubleLine Income Solutions Fund's dividend payout ratio is 0.00, indicating that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns.
DoubleLine Income Solutions Fund's profitability rank is 2 out of 10 as of 2023-03-31, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of the past 10 years.
DoubleLine Income Solutions Fund's Growth Metrics
A company must have robust growth metrics to ensure the sustainability of dividends. DoubleLine Income Solutions Fund'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 DoubleLine Income Solutions Fund's dividend yield is attractive, its negative growth rate and low profitability and growth ranks raise concerns about the sustainability of its dividends. Investors should consider these factors carefully 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.
