BlackRock Taxable Municipal Bond Trust's Dividend Analysis
An In-depth Look at the Trust's Dividend Performance and Sustainability
BlackRock Taxable Municipal Bond Trust (NYSE:BBN) recently announced a dividend of $0.09 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 BlackRock Taxable Municipal Bond Trust's dividend performance and assess its sustainability.
What Does BlackRock Taxable Municipal Bond Trust Do?
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BlackRock Taxable Municipal Bond Trust is a diversified, closed-end management investment company. Its investment objective is to seek high current income, with a secondary objective of capital appreciation.
A Glimpse at BlackRock Taxable Municipal Bond Trust's Dividend History
BlackRock Taxable Municipal Bond Trust has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down BlackRock Taxable Municipal Bond Trust's Dividend Yield and Growth
As of today, BlackRock Taxable Municipal Bond Trust currently has a 12-month trailing dividend yield of 8.22% and a 12-month forward dividend yield of 7.35%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, BlackRock Taxable Municipal Bond Trust's annual dividend growth rate was 3.50%. Extended to a five-year horizon, this rate decreased to -2.20% per year.
Based on BlackRock Taxable Municipal Bond Trust's dividend yield and five-year growth rate, the 5-year yield on cost of BlackRock Taxable Municipal Bond Trust stock as of today is approximately 7.35%.
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, BlackRock Taxable Municipal Bond Trust's dividend payout ratio is 0.00.