Exploring the Dividend Performance and Sustainability of Cohen & Steers REIT and Preferred Income Fund Inc
Cohen & Steers REIT and Preferred Income Fund Inc (RNP, Financial) recently announced a dividend of $0.14 per share, payable on 2024-06-28, with the ex-dividend date set for 2024-06-11. 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 REIT and Preferred Income Fund Inc's dividend performance and assess its sustainability.
What Does Cohen & Steers REIT and Preferred Income Fund Inc Do?
Cohen & Steers REIT and Preferred Income Fund Inc is a diversified, closed-ended investment management fund. Its investment objective is to provide high current income with capital appreciation as its secondary objective. The Fund invests at least its total assets in common stocks issued by real estate investment trusts (REITs) and preferred securities under normal circumstances.
A Glimpse at Cohen & Steers REIT and Preferred Income Fund Inc's Dividend History
Cohen & Steers REIT and Preferred Income Fund Inc has maintained a consistent dividend payment record since 2003. 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 REIT and Preferred Income Fund Inc's Dividend Yield and Growth
As of today, Cohen & Steers REIT and Preferred Income Fund Inc currently has a 12-month trailing dividend yield of 8.06% and a 12-month forward dividend yield of 8.06%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Cohen & Steers REIT and Preferred Income Fund Inc's annual dividend growth rate was 3.10%. Extended to a five-year horizon, this rate decreased to 2.10% per year.
Based on Cohen & Steers REIT and Preferred Income Fund Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cohen & Steers REIT and Preferred Income Fund Inc stock as of today is approximately 8.94%.
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 2023-12-31, Cohen & Steers REIT and Preferred Income Fund Inc's dividend payout ratio is 0.71, which may suggest that the company's dividend may not be sustainable.
Cohen & Steers REIT and Preferred Income Fund Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cohen & Steers REIT and Preferred Income Fund Inc's profitability 2 out of 10 as of 2023-12-31, suggesting the dividend may not be sustainable. The company has reported net profit in 5 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 REIT and Preferred 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. Revenue is the lifeblood of any company, and Cohen & Steers REIT and Preferred Income Fund Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Cohen & Steers REIT and Preferred Income Fund Inc's revenue has increased by approximately 77.60% per year on average, a rate that outperforms approximately 90.88% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Cohen & Steers REIT and Preferred Income Fund Inc's earnings increased by approximately 82.20% per year on average, a rate that outperforms approximately 91.84% of global competitors.
Conclusion: Evaluating Dividend Sustainability
While Cohen & Steers REIT and Preferred Income Fund Inc offers an attractive dividend yield and a history of consistent dividend payments, the sustainability of these dividends hinges on several factors. The company's low profitability and growth ranks, combined with a moderate payout ratio, suggest potential challenges in maintaining its dividend payments without adjustments. Investors should closely monitor these metrics and consider the balance between yield and risk when making investment decisions. 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.
