Eaton Vance Tax Advgd Gbl Div Inc Fd (ETG): A Deep Dive into its Dividend Performance
Understanding the Dividend History, Yield, and Growth of Eaton Vance Tax Advgd Gbl Div Inc Fd (NYSE:ETG)
Eaton Vance Tax Advgd Gbl Div Inc Fd (NYSE:ETG) recently announced a dividend of $0.1 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-21. 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 Eaton Vance Tax Advgd Gbl Div Inc Fd's dividend performance and assess its sustainability.
What Does Eaton Vance Tax Advgd Gbl Div Inc Fd Do?
Warning! GuruFocus has detected 6 Warning Signs with ETG. Click here to check it out.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Eaton Vance Tax Advgd Gbl Div Inc Fd is a diversified, closed-end management investment company. Its investment objective is to provide a high level of after-tax total return consisting of tax-advantaged dividend income and capital appreciation. The fund pursues its objective by investing in dividend-paying common and preferred stocks. Its portfolio of investments consists of aerospace and defense, capital markets, diversified telecommunication services, electrical equipment, biotechnology, banks, and other areas.
A Glimpse at Eaton Vance Tax Advgd Gbl Div Inc Fd's Dividend History
Eaton Vance Tax Advgd Gbl Div Inc Fd has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a monthly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Eaton Vance Tax Advgd Gbl Div Inc Fd's Dividend Yield and Growth
As of today, Eaton Vance Tax Advgd Gbl Div Inc Fd currently has a 12-month trailing dividend yield of 7.86% and a 12-month forward dividend yield of 7.48%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Eaton Vance Tax Advgd Gbl Div Inc Fd's annual dividend growth rate was 8.20%. Extended to a five-year horizon, this rate decreased to 4.00% per year.
Based on Eaton Vance Tax Advgd Gbl Div Inc Fd's dividend yield and five-year growth rate, the 5-year yield on cost of Eaton Vance Tax Advgd Gbl Div Inc Fd stock as of today is approximately 9.56%.
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 2023-04-30, Eaton Vance Tax Advgd Gbl Div Inc Fd's dividend payout ratio is 2.51, which may suggest that the company's dividend may not be sustainable.
Eaton Vance Tax Advgd Gbl Div Inc Fd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Eaton Vance Tax Advgd Gbl Div Inc Fd'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 3 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Eaton Vance Tax Advgd Gbl Div Inc Fd'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 Eaton Vance Tax Advgd Gbl Div Inc Fd has a strong history of dividend payments, its current dividend growth rate, payout ratio, profitability, and growth metrics raise questions about the sustainability of future dividends. It is essential for investors to continue monitoring these factors closely. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
