MainStay CBRE Global Infrastructure Megatrends Fund's Dividend Analysis
Assessing the Upcoming Dividend and Financial Health of MEGI
MainStay CBRE Global Infrastructure Megatrends Fund (NYSE:MEGI) recently announced a dividend of $0.13 per share, payable on 2023-12-29, with the ex-dividend date set for 2023-12-22. 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 MainStay CBRE Global Infrastructure Megatrends Fund's dividend performance and assess its sustainability.
What Does MainStay CBRE Global Infrastructure Megatrends Fund Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
MainStay CBRE Global Infrastructure Megatrends Fund is a non-diversified, closed-end management investment company. The Fund's investment objective is to seek a high level of total return with an emphasis on current income.
A Glimpse at MainStay CBRE Global Infrastructure Megatrends Fund's Dividend History
MainStay CBRE Global Infrastructure Megatrends Fund has maintained a consistent dividend payment record since 2022, with dividends currently distributed on a monthly basis. However, there's not enough data to calculate the growth rate, and hence the status of the stock as a dividend king cannot be confirmed. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down MainStay CBRE Global Infrastructure Megatrends Fund's Dividend Yield and Growth
As of today, MainStay CBRE Global Infrastructure Megatrends Fund currently has a 12-month trailing dividend yield of 10.51% and a 12-month forward dividend yield of 11.52%, suggesting an expectation of increased dividend payments over the next 12 months. The 5-year yield on cost of MainStay CBRE Global Infrastructure Megatrends Fund stock as of today is approximately 10.51%.
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. MainStay CBRE Global Infrastructure Megatrends Fund's dividend payout ratio is currently not applicable due to insufficient data. Furthermore, GuruFocus ranks MainStay CBRE Global Infrastructure Megatrends Fund's profitability rank at 1 out of 10 as of 2023-05-31, suggesting the dividend may face sustainability issues, as the company has reported net profit in 0 years out of the past 10 years.
Growth Metrics: The Future Outlook
The future sustainability of dividends is also contingent on a company's growth metrics. MainStay CBRE Global Infrastructure Megatrends Fund's growth rank of 1 out of 10 indicates poor growth prospects, which could imply that the dividend may not be sustainable in the long term.
Next Steps
Given MainStay CBRE Global Infrastructure Megatrends Fund's high dividend yield, investors may be attracted to the potential income. However, the Fund's low profitability and growth ranks, along with the absence of a clear dividend growth trend, signal caution. Investors should consider these factors carefully while also keeping an eye on industry trends and the Fund's strategic initiatives that may influence future dividend sustainability. For those seeking high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener to discover other investment 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.
