Pioneer Municipal High Income Trust's Dividend Analysis
An In-depth Look at the Trust's Dividend Performance and Sustainability
Pioneer Municipal High Income Trust (NYSE:MHI) 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 look into Pioneer Municipal High Income Trust's dividend performance and assess its sustainability.
What Does Pioneer Municipal High Income Trust Do?
Pioneer Municipal High Income Trust is a diversified, closed-end management investment company. Its investment objective is to seek a high level of current income exempt from regular federal income tax and capital appreciation. The trust invests in various sectors such as health, education, tobacco, facilities, transportation, utilities, airport, water, and other sectors.
A Glimpse at Pioneer Municipal High Income Trust's Dividend History
Pioneer Municipal High Income Trust 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 Municipal High Income Trust's Dividend Yield and Growth
As of today, Pioneer Municipal High Income Trust currently has a 12-month trailing dividend yield of 6.26% and a 12-month forward dividend yield of 4.52%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Pioneer Municipal High Income Trust's annual dividend growth rate was -3.10%. Extended to a five-year horizon, this rate decreased to -4.90% per year.
Based on Pioneer Municipal High Income Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Pioneer Municipal High Income Trust stock as of today is approximately 4.87%.
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 2023-04-30, Pioneer Municipal High Income Trust's dividend payout ratio is 0.00.
Pioneer Municipal High Income Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Pioneer Municipal High Income Trust's profitability 2 out of 10 as of 2023-04-30, 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 Municipal High Income Trust's growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Conclusion
Given Pioneer Municipal High Income Trust's declining dividend growth rate, low profitability rank, and poor growth prospects, investors may need to reconsider the sustainability of its dividends. While the trust has a history of consistent dividend payments, the current trends indicate a potential decrease in future dividends. It's crucial for investors to monitor these metrics and make informed decisions accordingly.
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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.
