Invesco Quality Municipal Income Trust's Dividend Analysis
Unpacking IQI's Dividend Performance and Sustainability
Invesco Quality Municipal Income Trust (NYSE:IQI) recently announced a dividend of $0.04 per share, payable on October 31, 2023, with the ex-dividend date set for October 13, 2023. As investors look forward to this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. Using data from GuruFocus, we'll explore Invesco Quality Municipal Income Trust's dividend performance and assess its sustainability.
Introducing Invesco Quality Municipal Income Trust
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Invesco Quality Municipal Income Trust is a diversified, closed-end management investment company. Its primary investment objective is to generate current income exempt from federal income tax.
Tracing Invesco Quality Municipal Income Trust's Dividend History
Since 1992, Invesco Quality Municipal Income Trust has maintained a consistent dividend payment record, currently distributing dividends on a monthly basis. The chart below shows the annual Dividends Per Share for tracking historical trends.
Assessing Invesco Quality Municipal Income Trust's Dividend Yield and Growth
As of today, Invesco Quality Municipal Income Trust has a 12-month trailing dividend yield of 5.51% and a 12-month forward dividend yield of 5.10%, indicating an expected decrease in dividend payments over the next 12 months.
Over the past three years, the company's annual dividend growth rate was -4.90%. When extended to a five-year horizon, this rate increased to -4.20% per year. Based on these figures, the 5-year yield on cost of Invesco Quality Municipal Income Trust stock is approximately 4.45% as of today.
Is Invesco Quality Municipal Income Trust's Dividend Sustainable?
To evaluate the sustainability of the dividend, it's essential to consider the company's payout ratio. The dividend payout ratio reveals the portion of earnings the company distributes as dividends. A lower ratio indicates that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns. As of February 28, 2023, Invesco Quality Municipal Income Trust's dividend payout ratio stands at 0.00.
Invesco Quality Municipal Income Trust's profitability rank provides an understanding of the company's earnings prowess relative to its peers. With a rank of 2 out of 10 as of February 28, 2023, the company's profitability suggests that the dividend may not be sustainable. The company has reported net profit in 5 out of the past 10 years.
Future Growth Prospects
For the sustainability of dividends, robust growth metrics are essential. However, Invesco Quality Municipal Income Trust's growth rank of 2 out of 10 suggests poor growth prospects, indicating that the dividend may not be sustainable.
Conclusion
While Invesco Quality Municipal Income Trust has a long history of dividend payments, its negative growth rate, low profitability rank, and low growth rank raise questions about the sustainability of its dividends. Investors should consider these factors when evaluating IQI's dividend prospects. 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.
