Eaton Vance Enhanced Equity Income Fund II's Dividend Analysis
Assessing the Sustainability of Eaton Vance Enhanced Equity Income Fund II's Dividends
Eaton Vance Enhanced Equity Income Fund II (NYSE:EOS) recently announced a dividend of $0.12 per share, payable on 2024-01-31, with the ex-dividend date set for 2024-01-22. 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 look into Eaton Vance Enhanced Equity Income Fund II's dividend performance and assess its sustainability.
What Does Eaton Vance Enhanced Equity Income Fund II Do?
-
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
-
How to calculate the intrinsic value of a stock?
Eaton Vance Enhanced Equity Income Fund II is a diversified, closed-end management investment company. The fund's primary investment objective is to provide current income, with a secondary objective of capital appreciation. It invests in a portfolio of large and mid-cap securities in sectors such as Information Technology, Consumer Discretionary, Communication Services, Healthcare, Industrials, Consumer Staples, Financials, Materials, and Energy.
A Glimpse at Eaton Vance Enhanced Equity Income Fund II's Dividend History
Eaton Vance Enhanced Equity Income Fund II has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Eaton Vance Enhanced Equity Income Fund II's Dividend Yield and Growth
As of today, Eaton Vance Enhanced Equity Income Fund II currently has a 12-month trailing dividend yield of 7.17% and a 12-month forward dividend yield of 7.17%. This suggests an expectation of the same dividend payments over the next 12 months. Over the past three years, Eaton Vance Enhanced Equity Income Fund II's annual dividend growth rate was 7.70%. Extended to a five-year horizon, this rate increased to 8.20% per year. Based on Eaton Vance Enhanced Equity Income Fund II's dividend yield and five-year growth rate, the 5-year yield on cost of Eaton Vance Enhanced Equity Income Fund II stock as of today is approximately 10.63%.
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, Eaton Vance Enhanced Equity Income Fund II's dividend payout ratio is 0.42.