Unraveling the Dividend Performance and Sustainability of BNY Mellon Municipal Bond Infrastructure Fund, Inc.
BNY Mellon Municipal Bond Infrastructure Fund, Inc.(DMB, Financial) recently announced a dividend of $0.04 per share, payable on 2023-11-01, with the ex-dividend date set for 2023-10-18. 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 BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s dividend performance and assess its sustainability.
What Does BNY Mellon Municipal Bond Infrastructure Fund, Inc. Do?
BNY Mellon Municipal Bond Infrastructure Fund, Inc. is a diversified closed-end management investment company. The fund's investment objective is to seek to provide as high a level of current income exempt from regular federal income tax as is consistent with the preservation of capital. It invests in sectors such as transportation, energy and utilities, social infrastructure, and water and environmental sectors.
A Glimpse at BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s Dividend History
BNY Mellon Municipal Bond Infrastructure Fund, Inc. has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s Dividend Yield and Growth
As of today, BNY Mellon Municipal Bond Infrastructure Fund, Inc. currently has a 12-month trailing dividend yield of 4.93% and a 12-month forward dividend yield of 4.80%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s annual dividend growth rate was -2.80%. Extended to a five-year horizon, this rate increased to -1.20% per year.
Based on BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s dividend yield and five-year growth rate, the 5-year yield on cost of BNY Mellon Municipal Bond Infrastructure Fund, Inc. stock as of today is approximately 4.64%.
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 2023-02-28, BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s dividend payout ratio is 0.00.
BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s profitability 2 out of 10 as of 2023-02-28, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. BNY Mellon Municipal Bond Infrastructure 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.
Next Steps
Considering BNY Mellon Municipal Bond Infrastructure Fund, Inc.'s dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, the sustainability of its dividend is uncertain. Therefore, investors should exercise caution and conduct thorough due diligence before making any 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.
