Assessing the Sustainability of IAE's Upcoming Dividend Payment
Voya Asia Pacific High Dividend Equity Income Fund (IAE, Financial) has recently announced a dividend of $0.16 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-10-02. As investors anticipate this upcoming payment, it's essential to review the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Voya Asia Pacific High Dividend Equity Income Fund's dividend performance and assess its sustainability.
Overview of Voya Asia Pacific High Dividend Equity Income Fund
Voya Asia Pacific High Dividend Equity Income Fund is a United States-based diversified, closed-end fund. The fund's investment objective is total return through a combination of current income, capital gains, and capital appreciation. Under normal market conditions, the fund seeks to achieve its investment objective by investing in a portfolio of dividend-yielding equity securities of Asia Pacific companies.
Voya Asia Pacific High Dividend Equity Income Fund's Dividend History
Voya Asia Pacific High Dividend Equity Income Fund has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Voya Asia Pacific High Dividend Equity Income Fund's Dividend Yield and Growth
As of today, Voya Asia Pacific High Dividend Equity Income Fund currently has a 12-month trailing dividend yield of 12.95% and a 12-month forward dividend yield of 11.05%. This suggests an expectation of decrease dividend payments over the next 12 months. Over the past three years, Voya Asia Pacific High Dividend Equity Income Fund's annual dividend growth rate was 0.80%. Extended to a five-year horizon, this rate increased to 1.20% per year.
Based on Voya Asia Pacific High Dividend Equity Income Fund's dividend yield and five-year growth rate, the 5-year yield on cost of Voya Asia Pacific High Dividend Equity Income Fund stock as of today is approximately 13.75%.
Assessing Dividend Sustainability: 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 2023-02-28, Voya Asia Pacific High Dividend Equity Income Fund's dividend payout ratio is 0.00.
Voya Asia Pacific High Dividend Equity Income Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Voya Asia Pacific High Dividend Equity Income Fund's profitability 1 out of 10 as of 2023-02-28, suggesting the dividend may not be sustainable. The company has reported net profit in 2 years out of past 10 years.
Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Voya Asia Pacific High Dividend Equity Income Fund's growth rank of 1 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 Voya Asia Pacific High Dividend Equity Income Fund's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Voya Asia Pacific High Dividend Equity Income Fund's revenue has increased by approximately -2.30% per year on average, a rate that underperforms than approximately 60.72% 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, Voya Asia Pacific High Dividend Equity Income Fund's earnings increased by approximately -1.70% per year on average, a rate that underperforms than approximately 59.32% of global competitors.
Concluding Thoughts
In conclusion, while Voya Asia Pacific High Dividend Equity Income Fund's dividend yield and consistent payment history may be attractive, its low profitability and growth ranks, combined with a weak revenue and EPS growth rate, cast doubt on the sustainability of its dividends. Investors should carefully consider these factors when contemplating an investment in Voya Asia Pacific High Dividend Equity Income Fund.
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