Eaton Vance Tax-Mgd Glbl Div Eq Inc's Dividend Analysis
An In-depth Look at EXG's Dividend Performance and Sustainability
Eaton Vance Tax-Mgd Glbl Div Eq Inc (NYSE:EXG) recently announced a dividend of $0.06 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 Eaton Vance Tax-Mgd Glbl Div Eq Inc's dividend performance and assess its sustainability.
What Does Eaton Vance Tax-Mgd Glbl Div Eq Inc Do?
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Eaton Vance Tax-Mgd Glbl Div Eq Inc is a diversified, closed-end management investment company. Its primary investment objective is to provide current income and gains. The secondary objective of the fund is capital appreciation. It invests in a diversified portfolio of domestic and foreign common stocks with an emphasis on dividend-paying stocks and writes call options on one or more U.S. and foreign indices with respect to a portion of the value of its common stock portfolio to generate current cash flow from the options premium received. Its portfolio of investments spans across capital markets, banks, internet and direct marketing retail, biotechnology, media, oil, gas, and consumable fuels, among other sectors.
A Glimpse at Eaton Vance Tax-Mgd Glbl Div Eq Inc's Dividend History
Eaton Vance Tax-Mgd Glbl Div Eq Inc has maintained a consistent dividend payment record since 2007, with dividends currently distributed on a monthly basis. The chart below shows annual Dividends Per Share for tracking historical trends.
Breaking Down Eaton Vance Tax-Mgd Glbl Div Eq Inc's Dividend Yield and Growth
As of today, Eaton Vance Tax-Mgd Glbl Div Eq Inc currently has a 12-month trailing dividend yield of 9.34% and a 12-month forward dividend yield of 9.13%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 2.50%, which decreased to -3.30% per year when extended to a five-year horizon.
Based on Eaton Vance Tax-Mgd Glbl Div Eq Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Eaton Vance Tax-Mgd Glbl Div Eq Inc stock as of today is approximately 7.90%.
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-Mgd Glbl Div Eq Inc's dividend payout ratio is 1.63, which may suggest that the company's dividend may not be sustainable.
Eaton Vance Tax-Mgd Glbl Div Eq Inc's profitability rank is 2 out of 10 as of 2023-04-30, suggesting that the dividend may also not be sustainable. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Eaton Vance Tax-Mgd Glbl Div Eq Inc'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-Mgd Glbl Div Eq Inc has a commendable history of consistent dividend payments, its current dividend growth rate, payout ratio, profitability, and growth metrics raise concerns about the sustainability of its dividends. Investors would need to keep a close eye on these factors to make informed 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.
