EATON VANCE TAX ADVANTAGED DIVIDEND INCOME FUND's Dividend Analysis
Insights into EVT's Dividend History, Yield, Growth, and Sustainability
EATON VANCE TAX ADVANTAGED DIVIDEND INCOME FUND (NYSE:EVT) recently announced a dividend of $0.15 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-20. 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 delve into EVT's dividend performance and assess its sustainability.
What Does EATON VANCE TAX ADVANTAGED DIVIDEND INCOME FUND Do?
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EATON VANCE TAX ADVANTAGED DIVIDEND INCOME FUND is a diversified, closed-end management investment company. Its objective is to provide a high level of after-tax total return consisting primarily of tax-advantaged dividend income and capital appreciation. The fund primarily invests in dividend-paying common and preferred stocks, with a portfolio that spans across various sectors.
A Glimpse at EVT's Dividend History
EVT has maintained a steady dividend payment record since 2003, with dividends currently distributed on a monthly basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Breaking Down EVT's Dividend Yield and Growth
As of today, EVT has a 12-month trailing dividend yield of 8.90% and a 12-month forward dividend yield of 8.82%, suggesting an expectation of decreased dividend payments over the next 12 months. Over the past three years, EVT's annual dividend growth rate was 3.90%, decreasing to 3.20% per year over a five-year horizon. Based on EVT's dividend yield and five-year growth rate, the 5-year yield on cost of EVT stock as of today is approximately 10.42%.
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. As of 2023-04-30, EVT's dividend payout ratio is 0.00. EVT's profitability rank is 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.
Growth Metrics: The Future Outlook
EVT's growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Next Steps
In conclusion, while EVT has a history of consistent dividend payments, its low growth and profitability ranks raise concerns about the sustainability of its dividends. Investors should consider these factors and monitor EVT's future earnings and growth prospects 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.
