Pioneer Muni High Income Advantage Tr's Dividend Analysis
Understanding the Dividend Performance and its Sustainability
Pioneer Muni High Income Advantage Tr (NYSE:MAV) recently announced a dividend of $0.03 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-17. 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 delve into Pioneer Muni High Income Advantage Tr's dividend performance and assess its sustainability.
What Does Pioneer Muni High Income Advantage Tr Do?
Pioneer Muni High Income Advantage Tr is a closed-end fund designed to pursue high current income exempt from regular federal income tax and to seek capital appreciation. The fund invests in the fixed income markets of the United States. It invests primarily in municipal bonds. Geographically, its activities are carried out through the United States.
A Glimpse at Pioneer Muni High Income Advantage Tr's Dividend History
Pioneer Muni High Income Advantage Tr has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Pioneer Muni High Income Advantage Tr's Dividend Yield and Growth
As of today, Pioneer Muni High Income Advantage Tr currently has a 12-month trailing dividend yield of 6.27% and a 12-month forward dividend yield of 4.87%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Pioneer Muni High Income Advantage Tr's annual dividend growth rate was 2.40%. Extended to a five-year horizon, this rate decreased to -3.90% per year. Based on Pioneer Muni High Income Advantage Tr's dividend yield and five-year growth rate, the 5-year yield on cost of Pioneer Muni High Income Advantage Tr stock as of today is approximately 5.14%.
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 2023-03-31, Pioneer Muni High Income Advantage Tr's dividend payout ratio is 0.00.
Pioneer Muni High Income Advantage Tr's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Pioneer Muni High Income Advantage Tr's profitability 2 out of 10 as of 2023-03-31, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Pioneer Muni High Income Advantage Tr'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 Pioneer Muni High Income Advantage Tr has a history of consistent dividend payments, its current dividend yield, growth rate, payout ratio, profitability, and growth metrics suggest that future dividends may not be sustainable. Investors should consider these factors when making decisions about investing in Pioneer Muni High Income Advantage Tr. 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.
