Unraveling the Dividend Dynamics of Alliancebernstein Glb High Inc Fund Inc (AWF)
An In-depth Analysis of the Company's Dividend Performance and Sustainability
Alliancebernstein Glb High Inc Fund Inc (NYSE:AWF) recently announced a dividend of $0.07 per share, payable on 2023-10-20, with the ex-dividend date set for 2023-10-05. 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 Alliancebernstein Glb High Inc Fund Inc's dividend performance and assess its sustainability.
Introduction to Alliancebernstein Glb High Inc Fund Inc
Alliancebernstein Glb High Inc Fund Inc is a United States-based diversified, closed-end management investment company. Its primary investment objective is to seek high current income, and secondarily, capital appreciation. The fund invests in the debt securities, including Sovereign Debt Obligations and corporate debt, denominated in non-U.S. currencies as well as in the U.S. Dollar. It may invest without limit in emerging and developed markets and debt securities of U.S. and non-U.S. corporate issuers.
Historical Perspective of Alliancebernstein Glb High Inc Fund Inc's Dividends
Alliancebernstein Glb High Inc Fund Inc has maintained a consistent dividend payment record since 1994. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Understanding Alliancebernstein Glb High Inc Fund Inc's Dividend Yield and Growth
As of today, Alliancebernstein Glb High Inc Fund Inc currently has a 12-month trailing dividend yield of 8.21% and a 12-month forward dividend yield of 8.21%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Alliancebernstein Glb High Inc Fund Inc's annual dividend growth rate was -2.80%. Extended to a five-year horizon, this rate increased to -2.60% per year.
Based on Alliancebernstein Glb High Inc Fund Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Alliancebernstein Glb High Inc Fund Inc stock as of today is approximately 7.20%.
Assessing 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 2023-03-31, Alliancebernstein Glb High Inc Fund Inc's dividend payout ratio is 0.00.
Alliancebernstein Glb High Inc Fund Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Alliancebernstein Glb High Inc Fund Inc'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.
Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Alliancebernstein Glb High Inc 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.
Revenue is the lifeblood of any company, and Alliancebernstein Glb High Inc Fund Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Alliancebernstein Glb High Inc Fund Inc's revenue has increased by approximately 26.20% per year on average, a rate that outperforms than approximately 76.97% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Alliancebernstein Glb High Inc Fund Inc's earnings increased by approximately 25.80% per year on average, a rate that outperforms than approximately 70.64% of global competitors.
Conclusion
While Alliancebernstein Glb High Inc Fund Inc has a consistent dividend payment history, its negative dividend growth rate, low profitability rank, and poor growth metrics suggest that dividend sustainability may be a concern. However, the company's strong revenue growth and EPS growth rate paint a more optimistic picture. Investors should closely monitor these factors and make informed decisions about their investments in Alliancebernstein Glb High Inc Fund Inc.
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This article first appeared on GuruFocus.
