Exploring the sustainability of RQI's dividends, growth, and profitability
COHEN & STEERS QUALITY INCOME REALTY FUND INC (RQI, Financial) recently announced a dividend of $0.08 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. 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 deep dive into COHEN & STEERS QUALITY INCOME REALTY FUND INCs dividend performance and assess its sustainability.
What Does COHEN & STEERS QUALITY INCOME REALTY FUND INC Do?
COHEN & STEERS QUALITY INCOME REALTY FUND INC is a diversified, closed-end management investment company. The primary investment objective of the Fund is high current income through investment in real estate securities. Its secondary objective is capital appreciation. The Fund invests at least 80% of its total assets in income-producing common stocks and other securities issued by real estate companies, such as real estate investment trusts under normal market conditions.
A Glimpse at COHEN & STEERS QUALITY INCOME REALTY FUND INC's Dividend History
COHEN & STEERS QUALITY INCOME REALTY FUND INC has maintained a consistent dividend payment record since 2002. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down COHEN & STEERS QUALITY INCOME REALTY FUND INC's Dividend Yield and Growth
As of today, COHEN & STEERS QUALITY INCOME REALTY FUND INC currently has a 12-month trailing dividend yield of 10.09% and a 12-month forward dividend yield of 8.68%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, COHEN & STEERS QUALITY INCOME REALTY FUND INC's annual dividend growth rate was 7.60%. Extended to a five-year horizon, this rate decreased to 3.20% per year.
Based on COHEN & STEERS QUALITY INCOME REALTY FUND INC's dividend yield and five-year growth rate, the 5-year yield on cost of COHEN & STEERS QUALITY INCOME REALTY FUND INC stock as of today is approximately 11.81%.
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 2023-06-30, COHEN & STEERS QUALITY INCOME REALTY FUND INC's dividend payout ratio is 0.00.
COHEN & STEERS QUALITY INCOME REALTY FUND INC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks COHEN & STEERS QUALITY INCOME REALTY FUND INC's profitability 2 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 3 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. COHEN & STEERS QUALITY INCOME REALTY 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 COHEN & STEERS QUALITY INCOME REALTY FUND INC's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors should be cautious. The low growth rank and profitability rank indicate potential sustainability issues with the dividend. However, the company's consistent dividend payment record and high yield present an attractive opportunity for income-focused investors. It's crucial to monitor these metrics closely to make informed investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
