Kayne Anderson Energy Infrastructure Fund, Inc's Dividend Analysis
Unveiling the Dividend Prospects of Kayne Anderson Energy Infrastructure Fund, Inc
Kayne Anderson Energy Infrastructure Fund, Inc (NYSE:KYN) recently announced a dividend of $0.22 per share, payable on 2024-01-10, with the ex-dividend date set for 2024-01-02. 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 look into Kayne Anderson Energy Infrastructure Fund, Inc's dividend performance and assess its sustainability.
What Does Kayne Anderson Energy Infrastructure Fund, Inc Do?
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Kayne Anderson Energy Infrastructure Fund, Inc is a non-diversified, closed-end fund. Its investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. The company seeks to achieve its objectives by investing at least 80% of its total assets in the securities of Energy Infrastructure companies.
A Glimpse at Kayne Anderson Energy Infrastructure Fund, Inc's Dividend History
Kayne Anderson Energy Infrastructure Fund, Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kayne Anderson Energy Infrastructure Fund, Inc's Dividend Yield and Growth
As of today, Kayne Anderson Energy Infrastructure Fund, Inc currently has a 12-month trailing dividend yield of 9.45% and a 12-month forward dividend yield of 10.02%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Kayne Anderson Energy Infrastructure Fund, Inc's annual dividend growth rate was -19.20%. Based on Kayne Anderson Energy Infrastructure Fund, Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Kayne Anderson Energy Infrastructure Fund, Inc stock as of today is approximately 9.41%.
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 2023-05-31, Kayne Anderson Energy Infrastructure Fund, Inc's dividend payout ratio is 0.00. Kayne Anderson Energy Infrastructure Fund, Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kayne Anderson Energy Infrastructure Fund, Inc's profitability 2 out of 10 as of 2023-05-31, suggesting that the dividend may not be sustainable. The company has reported net profit in 3 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. Kayne Anderson Energy Infrastructure Fund, 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 Kayne Anderson Energy Infrastructure Fund, Inc's high dividend yield may be attractive, the negative dividend growth rate, low profitability rank, and poor growth prospects raise concerns about the sustainability of its dividends. Investors should consider these factors along with the company's strategic initiatives and industry trends when evaluating the potential for future dividend payments. Is Kayne Anderson Energy Infrastructure Fund, Inc's high yield worth the risk given its current challenges? GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find more sustainable dividend opportunities.
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.
