MainStay CBRE Global Infrastructure Megatrends Fund's Dividend Analysis
Exploring the Dividend Profile of MainStay CBRE Global Infrastructure Megatrends Fund (NYSE:MEGI)
MainStay CBRE Global Infrastructure Megatrends Fund (NYSE:MEGI) recently announced a dividend of $0.13 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-03-22. 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?
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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. Dividends are currently distributed on a monthly basis.
MainStay CBRE Global Infrastructure Megatrends Fund has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2024 years. 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 11.39% and a 12-month forward dividend yield of 12.05%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on MainStay CBRE Global Infrastructure Megatrends Fund's dividend yield and five-year growth rate, the 5-year yield on cost of MainStay CBRE Global Infrastructure Megatrends Fund stock as of today is approximately 11.39%.
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 2023-11-30, MainStay CBRE Global Infrastructure Megatrends Fund's dividend payout ratio is 0.00.
MainStay CBRE Global Infrastructure Megatrends Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks MainStay CBRE Global Infrastructure Megatrends Fund's profitability 1 out of 10 as of 2023-11-30, suggesting the dividend may not be sustainable. The company has reported net profit in 0 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. MainStay CBRE Global Infrastructure Megatrends Fund's growth rank of 1 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Next Steps in Assessing MainStay CBRE Global Infrastructure Megatrends Fund's Dividend Profile
The dividend profile of MainStay CBRE Global Infrastructure Megatrends Fund presents a mixed picture. While the Fund has a history of consistent dividend payments and a high current yield, the sustainability of these dividends is called into question by its low profitability rank and poor growth prospects. Investors should weigh the high yield against these risks and consider the Fund's future potential in light of industry trends and economic factors. For those seeking additional high-dividend opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener for further research.
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.
