Yahoo Finance Cohen & Steers REIT and Preferred Income Fund Inc's Dividend Analysis
An In-Depth Look at RNP's Dividend Sustainability and Growth
Cohen & Steers REIT and Preferred Income Fund Inc (NYSE:RNP) recently announced a dividend of $0.14 per share, payable on 2024-02-29, with the ex-dividend date set for 2024-02-13. 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 look into Cohen & Steers REIT and Preferred Income Fund Inc's dividend performance and assess its sustainability.
What Does Cohen & Steers REIT and Preferred Income Fund Inc Do?
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Cohen & Steers REIT and Preferred Income Fund Inc is a diversified, closed-ended investment management fund. Its investment objective is to provide high current income with capital appreciation as its secondary objective. The Fund invests at least 80% of its total assets in common stocks issued by real estate investment trusts (REITs) and preferred securities under normal circumstances.
A Glimpse at Cohen & Steers REIT and Preferred Income Fund Inc's Dividend History
Cohen & Steers REIT and Preferred Income Fund Inc has maintained a consistent dividend payment record since 2003, with dividends currently distributed on a monthly basis. Below is a chart showing the annual Dividends Per Share for tracking historical trends.
Breaking Down Cohen & Steers REIT and Preferred Income Fund Inc's Dividend Yield and Growth
As of today, Cohen & Steers REIT and Preferred Income Fund Inc boasts a 12-month trailing dividend yield of 7.99% and a 12-month forward dividend yield of 7.99%, indicating an expectation of consistent dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 3.10%, which decreased to 1.30% per year over a five-year period. Consequently, the 5-year yield on cost for RNP stock is approximately 8.52%.
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, which ensures the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Cohen & Steers REIT and Preferred Income Fund Inc's dividend payout ratio is 0.00, indicating no available data to assess this metric.
The profitability rank of Cohen & Steers REIT and Preferred Income Fund Inc, which stands at 2 out of 10 as of 2023-06-30, suggests that the dividend may be under threat due to lower earnings power relative to peers. The company has reported a net profit in 4 out of the past 10 years.
Growth Metrics: The Future Outlook
A company's growth metrics are crucial for the sustainability of dividends. Cohen & Steers REIT and Preferred Income Fund Inc's growth rank of 2 out of 10 indicates that the company has poor growth prospects, which could impact the sustainability of its dividends.
Next Steps
Investors considering Cohen & Steers REIT and Preferred Income Fund Inc for its attractive dividend yield must also weigh the risks associated with its low growth and profitability ranks. The dividend history and current yield may be appealing, but the future sustainability of these payments could be in question without improvements in profitability and growth metrics. For those seeking additional high-dividend yield opportunities, GuruFocus Premium users can explore options using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
