Swiss Helvetia Fund Inc (SWZ): A Closer Look at Its Dividend Performance and Sustainability
Unraveling the intricacies of the company's dividend history, yield, and growth rates
Swiss Helvetia Fund Inc(NYSE:SWZ) recently announced a dividend of $0.12 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-19. 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 deep dive into Swiss Helvetia Fund Inc's dividend performance and assess its sustainability.
Company Overview: Swiss Helvetia Fund Inc
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Swiss Helvetia Fund Inc is a non-diversified, closed-end investment company. Its investment objective is to seek long-term capital appreciation through investment in equity and equity-linked securities of Swiss companies. The group invests in various sectors such as pharmaceuticals, food and beverage, industrial goods and services, banks, personal and household goods, construction and materials, biotechnology, medical equipment, chemicals, technology, financial services, insurance, and retail.
Swiss Helvetia Fund Inc's Dividend History: A Retrospective
Swiss Helvetia Fund Inc has maintained a consistent dividend payment record since 2008. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Swiss Helvetia Fund Inc's Dividend Yield and Growth
As of today, Swiss Helvetia Fund Inc currently has a 12-month trailing dividend yield of 6.81% and a 12-month forward dividend yield of 6.25%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Swiss Helvetia Fund Inc's annual dividend growth rate was 64.40%. Extended to a five-year horizon, this rate decreased to 42.30% per year.
Based on Swiss Helvetia Fund Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Swiss Helvetia Fund Inc stock as of today is approximately 39.27%.
Evaluating Dividend Sustainability: 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 2023-06-30, Swiss Helvetia Fund Inc's dividend payout ratio is 0.35.
Swiss Helvetia Fund Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Swiss Helvetia Fund Inc's profitability 2 out of 10 as of 2023-06-30, 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. Swiss Helvetia 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.
Conclusion: Swiss Helvetia Fund Inc's Dividend Outlook
Considering Swiss Helvetia Fund Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, it appears that the company's dividends may not be sustainable in the long term. It's essential for investors to keep an eye on these key metrics to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
