Invesco Trust for Investment Grade Municipals's Dividend Analysis
Assessing the Sustainability and Growth of VGM's Dividends
Invesco Trust for Investment Grade Municipals (NYSE:VGM) recently announced a dividend of $0.03 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-13. As investors anticipate this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using GuruFocus data, we delve into Invesco Trust for Investment Grade Municipals's dividend performance to evaluate its sustainability.
Understanding Invesco Trust for Investment Grade Municipals
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Invesco Trust for Investment Grade Municipals operates within the financial services sector. The firm's investment goal is to offer common shareholders a high level of current income exempt from federal income tax, consistent with the preservation of capital.
Insight into Invesco Trust for Investment Grade Municipals's Dividend History
Since 1992, Invesco Trust for Investment Grade Municipals has maintained a consistent dividend payment record, with dividends currently being distributed on a monthly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Unpacking Invesco Trust for Investment Grade Municipals's Dividend Yield and Growth
As of today, Invesco Trust for Investment Grade Municipals boasts a 12-month trailing dividend yield of 5.32% and a 12-month forward dividend yield of 4.73%, indicating a potential decrease in dividend payments over the next 12 months.
In the past three years, Invesco Trust for Investment Grade Municipals's annual dividend growth rate was -4.60%, which further decreased to -5.00% per year over a five-year period. Based on these figures, the 5-year yield on cost of Invesco Trust for Investment Grade Municipals stock is approximately 4.12% as of today.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio is a vital metric to assess dividend sustainability, indicating the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a substantial part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-02-28, Invesco Trust for Investment Grade Municipals's dividend payout ratio is 0.00.
Furthermore, Invesco Trust for Investment Grade Municipals's profitability rank of 2 out of 10 as of 2023-02-28 suggests the dividend may not be sustainable, with the company reporting net profit in 4 years out of the past 10 years.
Assessing Future Growth Prospects
Invesco Trust for Investment Grade Municipals's growth rank of 2 out of 10 suggests that the company has poor growth prospects, which may further impact the sustainability of its dividends.
Conclusion
While Invesco Trust for Investment Grade Municipals has a commendable dividend payment history, its current dividend yield, growth rate, payout ratio, and growth metrics suggest that the sustainability of its dividends could be at risk. 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.
