Exploring the Sustainability of Cohen & Steers Infrastructure Fund Inc's Dividends
Cohen & Steers Infrastructure Fund Inc (UTF, Financial) recently announced a dividend of $0.16 per share, scheduled for payment on June 28, 2024, with the ex-dividend date set for June 11, 2024. As investors anticipate this forthcoming distribution, it's crucial to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will examine the performance and sustainability of dividends paid by Cohen & Steers Infrastructure Fund Inc.
What Does Cohen & Steers Infrastructure Fund Inc Do?
Cohen & Steers Infrastructure Fund Inc is a diversified, closed-end management investment company focusing on total return with an emphasis on income. It primarily invests in securities issued by infrastructure companies, including utilities, pipelines, toll roads, airports, and telecommunications companies, among others. This investment strategy is designed to capitalize on the essential services these entities provide.
A Glimpse at Cohen & Steers Infrastructure Fund Inc's Dividend History
Cohen & Steers Infrastructure Fund Inc has upheld a consistent record of dividend payments since 2004, distributing dividends on a monthly basis. This history reflects the fund's commitment to providing shareholders with regular income.
Breaking Down Cohen & Steers Infrastructure Fund Inc's Dividend Yield and Growth
Cohen & Steers Infrastructure Fund Inc currently boasts a 12-month trailing and forward dividend yield of 7.92%, indicating expectations of consistent dividend payments over the next year. However, over a five-year period, the dividend growth rate has seen a slight decline of 0.50% annually. Despite this, the 5-year yield on cost for Cohen & Steers Infrastructure Fund Inc's stock stands at approximately 7.72%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio of Cohen & Steers Infrastructure Fund Inc, which currently stands at 4.95, provides insights into the portion of earnings distributed as dividends. A lower ratio suggests that the company retains a significant part of its earnings, which supports future growth and stability. However, Cohen & Steers Infrastructure Fund Inc's profitability rank of 2 out of 10, along with its limited net profit history over the past decade, raises concerns about the long-term sustainability of its dividends.
Growth Metrics: The Future Outlook
The growth rank of Cohen & Steers Infrastructure Fund Inc is 2 out of 10, indicating poor growth prospects. This assessment suggests potential challenges in maintaining its dividend payments without significant improvements in business performance and profitability.
In conclusion, while Cohen & Steers Infrastructure Fund Inc has demonstrated a commitment to consistent dividend payments, its future sustainability is questionable due to its low profitability and growth metrics. Investors should closely monitor these aspects moving forward. For those seeking high-dividend yield opportunities, exploring options through the High Dividend Yield Screener on GuruFocus may provide valuable alternatives.
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.
