Cohen & Steers Infrastructure Fund Inc's Dividend Analysis
Assessing the Upcoming Dividend and the Fund's Financial Health
Cohen & Steers Infrastructure Fund Inc (NYSE:UTF) recently announced a dividend of $0.16 per share, payable on 2024-02-29, with the ex-dividend date set for 2024-02-13. 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 look into Cohen & Steers Infrastructure Fund Inc's dividend performance and assess its sustainability.
What Does Cohen & Steers Infrastructure Fund Inc Do?
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Cohen & Steers Infrastructure Fund Inc is a diversified, closed-end management investment company. Its primary investment objective is total return with an emphasis on income. The Fund invests at least 80% of its managed assets in securities issued by infrastructure companies, which consists of utilities, pipelines, toll roads, airports, railroads, ports, telecommunications companies, and other infrastructure companies, under normal market conditions.
A Glimpse at Cohen & Steers Infrastructure Fund Inc's Dividend History
Cohen & Steers Infrastructure Fund Inc has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cohen & Steers Infrastructure Fund Inc's Dividend Yield and Growth
As of today, Cohen & Steers Infrastructure Fund Inc currently has a 12-month trailing dividend yield of 8.51% and a 12-month forward dividend yield of 8.51%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Cohen & Steers Infrastructure Fund Inc's annual dividend growth rate was -2.40%. Extended to a five-year horizon, this rate increased to -0.50% per year. Based on Cohen & Steers Infrastructure Fund Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cohen & Steers Infrastructure Fund Inc stock as of today is approximately 8.30%.
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 2023-06-30, Cohen & Steers Infrastructure Fund Inc's dividend payout ratio is 0.00.
Cohen & Steers Infrastructure Fund Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cohen & Steers Infrastructure 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 the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Cohen & Steers 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.
Next Steps
In conclusion, while Cohen & Steers Infrastructure Fund Inc's high dividend yield may be attractive, the negative dividend growth rate, low profitability, and poor growth metrics raise concerns about the sustainability of future dividends. Investors should closely monitor the Fund's financial health and consider these factors when making investment decisions. For those seeking income-generating investments, it may be prudent to explore other high-dividend yield options. 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.
