A Comprehensive Analysis of the Company's Dividend Performance and Future Prospects
Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.(LDP, Financial) recently announced a dividend of $0.13 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. As investors anticipate this upcoming payment, it is also crucial to examine the company's dividend history, yield, and growth rates. Using the data from GuruFocus, we delve into Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.'s dividend performance and assess its sustainability.
An Overview of Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.
Cohen & Steers Ltd Duration Preferred & Income Fund, Inc. is a diversified, closed-end management investment company. Its primary investment objective is to achieve high current income, with capital appreciation as its secondary investment objective. The Fund invests at least 80% of its managed assets in preferred and other income securities issued by U.S. and non-U.S. companies under normal market conditions.
Tracing Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.'s Dividend History
Cohen & Steers Ltd Duration Preferred & Income Fund, Inc. has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dissecting Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.'s Dividend Yield and Growth
As of today, Cohen & Steers Ltd Duration Preferred & Income Fund, Inc. currently has a 12-month trailing dividend yield of 9.13% and a 12-month forward dividend yield of 8.91%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.'s annual dividend growth rate was -4.70%. Extended to a five-year horizon, this rate increased to 4.90% per year. Based on Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.'s dividend yield and five-year growth rate, the 5-year yield on cost of Cohen & Steers Ltd Duration Preferred & Income Fund, Inc. stock as of today is approximately 11.60%.
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 2023-06-30, Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.'s dividend payout ratio is 27.00, which may suggest that the company's dividend may not be sustainable.
Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.'s profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cohen & Steers Ltd Duration Preferred & Income 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 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Cohen & Steers Ltd Duration Preferred & Income 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.
Concluding Remarks
Considering Cohen & Steers Ltd Duration Preferred & Income Fund, Inc.'s dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors should exercise caution. While the company has a history of consistent dividend payments, its low profitability and growth ranks, coupled with a high payout ratio, signal potential challenges in sustaining future dividends. Therefore, investors should closely monitor these factors when making investment decisions.
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