Yahoo Finance Clough Global Equity Fund's Dividend Analysis
Understanding GLQ's Dividend Performance and Sustainability
Clough Global Equity Fund (GLQ) recently announced a dividend of $0.06 per share, payable on 2023-11-30, with the ex-dividend date set for 2023-11-16. As investors anticipate this upcoming payment, it's essential to examine the company's dividend history, yield, and growth rates. This analysis leverages GuruFocus data to delve into Clough Global Equity Fund's dividend performance and evaluate its sustainability.
What Does Clough Global Equity Fund Do?
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Clough Global Equity Fund is a closed-end management investment company. Its primary investment objective is to provide a high level of total return. The Fund invests in equity, equity-related securities, and fixed-income securities in both U.S. and non-U.S. markets.
A Glimpse at Clough Global Equity Fund's Dividend History
Clough Global Equity Fund has maintained a consistent dividend payment record since 2005, with dividends currently distributed monthly.
Below is a chart showcasing annual Dividends Per Share for tracking historical trends.
Breaking Down Clough Global Equity Fund's Dividend Yield and Growth
As of today, Clough Global Equity Fund has a 12-month trailing dividend yield of 15.98% and a 12-month forward dividend yield of 12.97%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Clough Global Equity Fund's annual dividend growth rate was 3.00%. Extended to a five-year horizon, this rate decreased to 2.60% per year. And over the past decade, Clough Global Equity Fund's annual dividends per share growth rate stands at 1.80%.
Based on Clough Global Equity Fund's dividend yield and five-year growth rate, the 5-year yield on cost of Clough Global Equity Fund stock as of today is approximately 18.17%.
The Sustainability Question: 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 2023-04-30, Clough Global Equity Fund's dividend payout ratio is 0.00.
Clough Global Equity Fund's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Clough Global Equity Fund's profitability 3 out of 10 as of 2023-04-30, suggesting that the dividend may not be sustainable. The company has reported net profit in 7 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must have robust growth metrics. Clough Global Equity Fund's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Conclusion
While Clough Global Equity Fund has a history of consistent dividend payments, its current payout ratio and growth metrics raise questions about the sustainability of its dividends. Investors should consider these factors in their decision-making process. Remember, a high dividend yield can be enticing, but it's crucial to consider a company's growth prospects and profitability in the long term.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
