Assessing the Sustainability and Future Prospects of IGR's Dividend
CBRE Clarion Global Real Estate Income Fund (IGR, Financial) recently announced a dividend of $0.06 per share, payable on 2023-11-30, with the ex-dividend date set for 2023-11-17. 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 CBRE Clarion Global Real Estate Income Fund's dividend performance and assess its sustainability.
What Does CBRE Clarion Global Real Estate Income Fund Do?
CBRE Clarion Global Real Estate Income Fund is a US-based diversified, closed-end management investment company. Its primary objective is high current income, with capital appreciation as its secondary objective. The fund invests a majority of its total assets in income-producing real estate securities located mainly in the developed markets of North America, Europe, Australia, and Asia. Its portfolio of investments spans across diversified, retail, industrial, residential, hotels, healthcare, and other sectors.
A Glimpse at CBRE Clarion Global Real Estate Income Fund's Dividend History
CBRE Clarion Global Real Estate Income Fund has maintained a consistent dividend payment record since 2009, with dividends currently being distributed on a monthly basis. The chart below illustrates the annual Dividends Per Share to track historical trends.
Breaking Down CBRE Clarion Global Real Estate Income Fund's Dividend Yield and Growth
As of today, CBRE Clarion Global Real Estate Income Fund currently has a 12-month trailing dividend yield of 16.22% and a 12-month forward dividend yield of 16.22%. This suggests an expectation of similar dividend payments over the next 12 months.
Over the past three years, CBRE Clarion Global Real Estate Income Fund's annual dividend growth rate was 2.20%. When extended to a five-year horizon, this rate decreased to 0.90% per year. Based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of CBRE Clarion Global Real Estate Income Fund stock as of today is approximately 16.96%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of the dividend can be evaluated by examining 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 2023-06-30, CBRE Clarion Global Real Estate Income Fund's dividend payout ratio is 0.00.
CBRE Clarion Global Real Estate Income Fund's profitability rank offers an understanding of the company's earnings prowess relative to its peers. As of 2023-06-30, GuruFocus ranks the company's profitability at 2 out of 10, suggesting that the dividend may not be sustainable. The company has reported net profit in 3 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must have robust growth metrics. CBRE Clarion Global Real Estate Income Fund's growth rank of 2 out of 10 suggests that the company has poor growth prospects, and thus, the dividend may not be sustainable.
Conclusion
While CBRE Clarion Global Real Estate Income Fund has a consistent track record of dividend payments, its low profitability and growth ranks raise concerns about the sustainability of its dividends. Investors may need to tread cautiously and consider these factors before 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.
