Unraveling the Dividend Performance of Kayne Anderson Energy Infrastructure Fund, Inc (KYN)
A Comprehensive Analysis of the Company's Dividend History, Yield, Growth, and Sustainability
Kayne Anderson Energy Infrastructure Fund, Inc(NYSE:KYN) recently announced a dividend of $0.21 per share, payable on 2023-10-10, with the ex-dividend date set for 2023-09-29. 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 Kayne Anderson Energy Infrastructure Fund, Inc's dividend performance and assess its sustainability.
Understanding Kayne Anderson Energy Infrastructure Fund, Inc
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Kayne Anderson Energy Infrastructure Fund, Inc is a non-diversified, closed-end fund. Its investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to the stockholder. The company seeks to achieve its objectives by investing at least 80% of its total assets in the securities of Energy Infrastructure companies.
Tracing Kayne Anderson Energy Infrastructure Fund, Inc's Dividend History
Kayne Anderson Energy Infrastructure Fund, Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Examining Kayne Anderson Energy Infrastructure Fund, Inc's Dividend Yield and Growth
As of today, Kayne Anderson Energy Infrastructure Fund, Inc currently has a 12-month trailing dividend yield of 9.42% and a 12-month forward dividend yield of 9.64%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Kayne Anderson Energy Infrastructure Fund, Inc's annual dividend growth rate was -19.20%. Based on Kayne Anderson Energy Infrastructure Fund, Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Kayne Anderson Energy Infrastructure Fund, Inc stock as of today is approximately 9.42%.
Is Kayne Anderson Energy Infrastructure Fund, Inc's Dividend Sustainable?
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 2023-05-31, Kayne Anderson Energy Infrastructure Fund, Inc's dividend payout ratio is 0.00.
Kayne Anderson Energy Infrastructure Fund, Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kayne Anderson Energy Infrastructure Fund, Inc's profitability 2 out of 10 as of 2023-05-31, suggesting the dividend may not be sustainable. The company has reported net profit in 3 years out of past 10 years.
Looking at Kayne Anderson Energy Infrastructure Fund, Inc's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Kayne Anderson Energy Infrastructure 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
While Kayne Anderson Energy Infrastructure Fund, Inc offers a promising dividend yield, the company's negative dividend growth rate, low profitability rank, and poor growth metrics raise questions about the sustainability of its dividends. Investors are advised to consider these factors 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.
