An In-depth Analysis of MFS Multimarket Income Trust's Dividend Performance and Future Prospects
MFS Multimarket Income Trust (MMT, Financial) recently announced a dividend of $0.03 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. As investors anticipate this upcoming payment, the focus also shifts to the company's dividend history, yield, and growth rates. By leveraging data from GuruFocus, we will delve into MFS Multimarket Income Trust's dividend performance and assess its sustainability.
Understanding MFS Multimarket Income Trust
MFS Multimarket Income Trust is a diversified closed-end management investment company. Its primary objective is to seek high current income, but it also considers capital appreciation. The fund invests a majority of its net assets in fixed-income securities, corporate bonds of the US and foreign issuers, US Government securities, foreign government securities, mortgage-backed and other asset-backed securities of US and foreign issuers, and debt instruments of issuers located in emerging market countries. Its portfolio comprises different sector investments such as aerospace, airlines, automotive, chemicals, electronics, and others.
A Look at MFS Multimarket Income Trust's Dividend History
MFS Multimarket Income Trust has upheld a consistent dividend payment record since 1988, with dividends currently distributed on a monthly basis. Here is a chart illustrating annual Dividends Per Share for tracking historical trends.
Dissecting MFS Multimarket Income Trust's Dividend Yield and Growth
As of today, MFS Multimarket Income Trust boasts a 12-month trailing dividend yield of 8.97% and a 12-month forward dividend yield of 8.93%, suggesting a potential decrease in dividend payments over the next 12 months.
Over the past three years, MFS Multimarket Income Trust's annual dividend growth rate was -4.60%. When extended to a five-year horizon, this rate increased to -3.20% per year. Based on MFS Multimarket Income Trust's dividend yield and five-year growth rate, the 5-year yield on cost of MFS Multimarket Income Trust stock as of today is approximately 7.62%.
Can MFS Multimarket Income Trust Sustain its Dividend? Payout Ratio and Profitability Analysis
To evaluate the sustainability of MFS Multimarket Income Trust's dividend, it's crucial to examine 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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-04-30, MFS Multimarket Income Trust's dividend payout ratio is 4.97, which may suggest that the company's dividend may not be sustainable.
MFS Multimarket Income Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks MFS Multimarket Income Trust's profitability 2 out of 10 as of 2023-04-30, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: A Glimpse into the Future
To ensure the sustainability of dividends, a company must exhibit robust growth metrics. MFS Multimarket Income Trust's growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Wrapping Up
Given MFS Multimarket Income Trust's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, the sustainability of its dividends remains uncertain. Investors need to closely monitor these factors to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
