Eaton Vance Tax-mangd Glo Buy-write Oppo's Dividend Analysis
An In-Depth Look at ETW's Dividend Sustainability
Eaton Vance Tax-mangd Glo Buy-write Oppo (NYSE:ETW) recently announced a dividend of $0.06 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 Tax-mangd Glo Buy-write Oppos dividend performance and assess its sustainability.
What Does Eaton Vance Tax-mangd Glo Buy-write Oppo Do?
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Eaton Vance Tax-mangd Glo Buy-write Oppo is a United States-based diversified, closed-end management investment company. Its primary investment objective is to provide current income and gains. The secondary objective of the fund is capital appreciation. The fund invests in a diversified portfolio of common stocks and writes call options on one or more U.S. indices on a substantial portion of the value of its common stock portfolio to generate current earnings from the option premium. Its portfolio of investments consists of the capital markets, chemicals, banks, biotechnology, media, and other sectors.
A Glimpse at Eaton Vance Tax-mangd Glo Buy-write Oppo's Dividend History
Eaton Vance Tax-mangd Glo Buy-write Oppo 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 Tax-mangd Glo Buy-write Oppo's Dividend Yield and Growth
As of today, Eaton Vance Tax-mangd Glo Buy-write Oppo currently has a 12-month trailing dividend yield of 8.92% and a 12-month forward dividend yield of 8.92%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Eaton Vance Tax-mangd Glo Buy-write Oppo's annual dividend growth rate was -1.10%. Extended to a five-year horizon, this rate decreased to -5.60% per year. Based on Eaton Vance Tax-mangd Glo Buy-write Oppo's dividend yield and five-year growth rate, the 5-year yield on cost of Eaton Vance Tax-mangd Glo Buy-write Oppo stock as of today is approximately 6.69%.
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 Tax-mangd Glo Buy-write Oppo's dividend payout ratio is 0.70, which may suggest that the company's dividend may not be sustainable.