Exploring the Dividend Sustainability and Growth Prospects of NBXG
Neuberger Berman Next Generation Connectivity Fund Inc.(NBXG, Financial) recently announced a dividend of $0.1 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-13. 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 delve into Neuberger Berman Next Generation Connectivity Fund Inc.'s dividend performance and assess its sustainability.
What Does Neuberger Berman Next Generation Connectivity Fund Inc. Do?
Neuberger Berman Next Generation Connectivity Fund Inc. is a newly organized, non-diversified, closed-end management investment company. The fund's investment objectives are to provide capital appreciation and income.
A Glimpse at Neuberger Berman Next Generation Connectivity Fund Inc.'s Dividend History
Neuberger Berman Next Generation Connectivity Fund Inc. has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a monthly basis. Neuberger Berman Next Generation Connectivity Fund Inc. has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2023 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Neuberger Berman Next Generation Connectivity Fund Inc.'s Dividend Yield and Growth
As of today, Neuberger Berman Next Generation Connectivity Fund Inc. currently has a 12-month trailing dividend yield of 11.67% and a 12-month forward dividend yield of 11.67%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Neuberger Berman Next Generation Connectivity Fund Inc.'s dividend yield and five-year growth rate, the 5-year yield on cost of Neuberger Berman Next Generation Connectivity Fund Inc. stock as of today is approximately 11.67%.
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 2023-04-30, Neuberger Berman Next Generation Connectivity Fund Inc.'s dividend payout ratio is 0.00.
Neuberger Berman Next Generation Connectivity Fund Inc.'s profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Neuberger Berman Next Generation Connectivity Fund Inc.'s profitability 1 out of 10 as of 2023-04-30, suggesting the dividend may not be sustainable. The company has reported net profit in 0 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Neuberger Berman Next Generation Connectivity Fund Inc.'s growth rank of 1 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Conclusion
While Neuberger Berman Next Generation Connectivity Fund Inc. has a commendable dividend history and offers a high yield, its low profitability and growth ranks raise concerns about the sustainability of its dividends. Investors should consider these factors in their 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.
