A Comprehensive Overview of MMU's Dividend History, Yield, and Sustainability
Western Asset Managed Municipals Fd Inc (MMU, Financial) has recently declared a dividend of $0.04 per share, scheduled for payment on 2023-10-02, with an ex-dividend date of 2023-09-21. This announcement has turned investor attention towards the company's dividend history, yield, and growth rates. This article will utilize GuruFocus data to delve into Western Asset Managed Municipals Fd Inc's dividend performance and evaluate its sustainability.
What Does Western Asset Managed Municipals Fd Inc Do?
Western Asset Managed Municipals Fd Inc is a non-diversified, closed-end management investment company. The fund aims to maximize current income exempt from federal income tax while preserving principal. Its product portfolio includes Mutual Funds, Exchange-traded funds, Money Market Funds, Variable Investments, among others. The company caters to individual and institutional investors.
A Glimpse at Western Asset Managed Municipals Fd Inc's Dividend History
Western Asset Managed Municipals Fd Inc has upheld a consistent dividend payment record since 1992. The dividends are currently distributed on a monthly basis. The chart below represents the annual Dividends Per Share for historical trend tracking.
Breaking Down Western Asset Managed Municipals Fd Inc's Dividend Yield and Growth
As of today, Western Asset Managed Municipals Fd Inc has a 12-month trailing dividend yield of 4.73% and a 12-month forward dividend yield of 4.65%, indicating a potential decrease in dividend payments over the next 12 months.
Over the past three years, Western Asset Managed Municipals Fd Inc's annual dividend growth rate was -8.20%. When extended to a five-year horizon, this rate decreased to -10.10% per year. The 5-year yield on cost for the company's stock is approximately 2.78% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of a dividend can be assessed by looking at the company's payout ratio. The dividend payout ratio offers insights into the portion of earnings the company distributes as dividends. A lower ratio implies that the company retains a significant part of its earnings, thereby ensuring funds for future growth and unexpected downturns. As of 2023-05-31, Western Asset Managed Municipals Fd Inc's dividend payout ratio is 0.00.
Western Asset Managed Municipals Fd Inc's profitability rank, at 2 out of 10 as of 2023-05-31, suggests the dividend may not be sustainable. The company has reported net profit in 3 out of the past 10 years.
Growth Metrics: The Future Outlook
Western Asset Managed Municipals Fd Inc's growth rank of 2 out of 10 suggests poor growth prospects, casting doubt on the sustainability of its dividend. The company's 3-year EPS growth rate indicates its ability to grow earnings, critical for sustaining dividends in the long run. Over the past three years, Western Asset Managed Municipals Fd Inc's earnings increased by approximately -196.20% per year on average, a rate that outperforms approximately 1.63% of global competitors.
Concluding Thoughts
Considering Western Asset Managed Municipals Fd Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, it appears that the company's dividend sustainability is questionable. Investors should carefully consider these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
