Unraveling The Cushing MLP & Infrastructure Total Return Fund's Dividend Performance
An In-depth Analysis of SRV's Dividend History, Yield, and Sustainability
The Cushing MLP & Infrastructure Total Return Fund (NYSE:SRV) recently announced a dividend of $0.45 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-13. As investors eagerly anticipate this upcoming payment, it's a fitting time to delve into the company's dividend history, yield, and growth rates. With data from GuruFocus, we'll scrutinize The Cushing MLP & Infrastructure Total Return Fund's dividend performance and evaluate its sustainability.
About The Cushing MLP & Infrastructure Total Return Fund
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The Cushing MLP & Infrastructure Total Return Fund is a non-diversified, closed-end management investment company. Its investment objective is to seek a high after-tax total return from a blend of capital appreciation and current income. The fund dedicates at least 80% of its net assets to a portfolio of infrastructure master limited partnerships (MLPs) and MLP-related investments.
Tracing The Cushing MLP & Infrastructure Total Return Fund's Dividend History
The Cushing MLP & Infrastructure Total Return Fund has maintained a steady dividend payment record since 2015, with dividends currently distributed on a monthly basis. The chart below tracks the annual Dividends Per Share to illustrate historical trends.
Dissecting The Cushing MLP & Infrastructure Total Return Fund's Dividend Yield and Growth
As of today, The Cushing MLP & Infrastructure Total Return Fund boasts a 12-month trailing dividend yield and a 12-month forward dividend yield of 12.30%, suggesting an expectation of consistent dividend payments over the next 12 months.
Over the past three years, the fund's annual dividend growth rate was -11.80%. This rate decreased to -15.10% per year over a five-year horizon. Based on the fund's dividend yield and five-year growth rate, the 5-year yield on cost of The Cushing MLP & Infrastructure Total Return Fund stock as of today is approximately 5.43%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, it's crucial to examine the company's payout ratio. The dividend payout ratio offers insights into the portion of earnings the company distributes as dividends. A lower ratio implies that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-05-31, The Cushing MLP & Infrastructure Total Return Fund's dividend payout ratio stands at 0.00.
The Cushing MLP & Infrastructure Total Return Fund's profitability rank provides an understanding of the company's earnings prowess relative to its peers. As of 2023-05-31, GuruFocus ranks the fund's profitability 3 out of 10, suggesting that the dividend may not be sustainable. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must demonstrate robust growth metrics. The Cushing MLP & Infrastructure Total Return Fund's growth rank of 3 out of 10 suggests that the company has poor growth prospects, potentially jeopardizing the sustainability of the dividend.
Revenue is the lifeblood of any company, and The Cushing MLP & Infrastructure Total Return Fund's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. The fund's revenue has increased by approximately 138.30% per year on average, a rate that outperforms approximately 96.87% of global competitors.
The company's 3-year EPS growth rate showcases its ability to grow its earnings, a critical component for sustaining dividends in the long run. Over the past three years, The Cushing MLP & Infrastructure Total Return Fund's earnings have increased by approximately 184.30% per year on average, a rate that outperforms approximately 97.36% of global competitors.
Concluding Thoughts
While The Cushing MLP & Infrastructure Total Return Fund offers an attractive dividend yield, concerns linger around its dividend growth rate, payout ratio, profitability, and growth metrics. These factors could potentially impact the sustainability of its dividends. Therefore, investors must carefully consider these aspects before making investment decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
