Dividend Analysis: A Deep Dive into Brookfield Real Assets Income Fund Inc.'s Dividend Performance
Uncovering the sustainability and growth prospects of Brookfield Real Assets Income Fund Inc.'s dividends
Brookfield Real Assets Income Fund Inc.(NYSE:RA) recently announced a dividend of $0.12 per share, payable on 2023-10-25, with the ex-dividend date set for 2023-10-10. 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 Brookfield Real Assets Income Fund Inc.'s dividend performance and assess its sustainability.
Understanding Brookfield Real Assets Income Fund Inc.
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Brookfield Real Assets Income Fund Inc. is a diversified, closed-end management investment company. Its investment objective is to seek a high total return, through high current income and secondarily, through the growth of capital. The Fund seeks to achieve its investment objective by investing in the real asset class, which includes the following: Real Estate Securities; Infrastructure Securities; and Natural Resources Securities (collectively, Real Asset Companies and Issuers). The Firm manages separate accounts, registered funds, and opportunistic strategies for institutional and individual clients, including financial institutions, public and private pension plans, insurance companies, endowments and foundations, sovereign wealth funds, and high-net-worth investors.
Brookfield Real Assets Income Fund Inc.'s Dividend History
Brookfield Real Assets Income Fund Inc. has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Brookfield Real Assets Income Fund Inc.'s Dividend Yield and Growth
As of today, Brookfield Real Assets Income Fund Inc. currently has a 12-month trailing dividend yield of 18.83% and a 12-month forward dividend yield of 11.17%. This suggests an expectation of decrease dividend payments over the next 12 months.
Brookfield Real Assets Income Fund Inc.'s dividend yield of 18.83% is near a 10-year high and outperforms than 98.11 of global competitors in the Asset Management industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Brookfield Real Assets Income Fund Inc.'s dividend yield and five-year growth rate, the 5-year yield on cost of Brookfield Real Assets Income Fund Inc. stock as of today is approximately 18.83%.
Payout Ratio and Profitability: Assessing Dividend Sustainability
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, Brookfield Real Assets Income Fund Inc.'s dividend payout ratio is 4.34. This may suggest that the company's dividend may not be sustainable.
Brookfield Real Assets Income Fund Inc.'s profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Brookfield Real Assets Income 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 3 years out of past 10 years.
Growth Metrics: A Glimpse into the Future
To ensure the sustainability of dividends, a company must have robust growth metrics. Brookfield Real Assets Income 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 Brookfield Real Assets Income Fund Inc. has a robust dividend history and an attractive yield, the sustainability of its dividends is questionable due to its high payout ratio and low profitability and growth ranks. Investors should carefully evaluate 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.
