Unpacking Pioneer High Income Trust's Dividend History, Growth, and Potential for Sustainability
Pioneer High Income Trust (PHT, Financial) recently announced a dividend of $0.06 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-19. As investors eagerly anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Let's leverage GuruFocus data to delve into Pioneer High Income Trusts dividend performance and evaluate its sustainability.
Understanding Pioneer High Income Trust's Operations
Pioneer High Income Trust is a closed-end management investment company. Its primary objective is to provide a high level of current income and seek capital appreciation. The group invests predominantly in fixed income markets, with its activities primarily carried out within the United States.
Historical Overview of Pioneer High Income Trust's Dividend
Pioneer High Income Trust has maintained a consistent dividend payment record since 2002, currently distributing dividends on a monthly basis. The chart below provides a historical perspective of the annual Dividends Per Share.
Dissecting Pioneer High Income Trust's Dividend Yield and Growth
As of today, Pioneer High Income Trust has a 12-month trailing dividend yield of 10.00% and a 12-month forward dividend yield of 9.57%, suggesting a potential decrease in dividend payments over the next 12 months.
Over the past three years, Pioneer High Income Trust's annual dividend growth rate was -3.60%. When extended to a five-year horizon, this rate increased to -0.90% per year. Based on these metrics, the 5-year yield on cost of Pioneer High Income Trust stock as of today is approximately 9.44%.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
To assess the sustainability of a dividend, it's crucial to examine the company's payout ratio. The dividend payout ratio indicates the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, providing a buffer for future growth and unexpected downturns. As of 2023-03-31, Pioneer High Income Trust's dividend payout ratio is 0.00.
Pioneer High Income Trust's profitability rank as of 2023-03-31 is 2 out of 10, suggesting potential concerns about the sustainability of its dividend. The company has reported net profit in 4 years out of the past 10 years.
Future Outlook: Growth Metrics
For dividends to be sustainable, a company must demonstrate robust growth metrics. Pioneer High Income Trust's growth rank of 2 out of 10 suggests potential challenges to dividend sustainability due to poor growth prospects.
However, Pioneer High Income Trust's revenue per share and 3-year revenue growth rate indicate a strong revenue model. The company's revenue has increased by approximately 31.90% per year on average, outperforming approximately 80.69% of global competitors.
Moreover, the company's 3-year EPS growth rate showcases its ability to grow its earnings, a vital factor for sustaining dividends in the long run. Over the past three years, Pioneer High Income Trust's earnings have increased by approximately 31.30% per year on average, outperforming approximately 75.13% of global competitors.
Concluding Remarks
While Pioneer High Income Trust has displayed a consistent dividend payment record, its negative growth rates and low profitability rank raise questions about the sustainability of its dividends. Despite these concerns, the company's strong revenue model and impressive EPS growth rate provide a glimmer of hope. Investors should continue to monitor these metrics closely as they consider the future prospects of Pioneer High Income Trust's dividends.
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