A Comprehensive Analysis of MMTRS's Dividend Performance and Sustainability
Mills Music Trust (MMTRS, Financial) recently announced a dividend of $1.43 per share, payable on 2023-09-26, with the ex-dividend date set for 2023-09-22. As investors anticipate this upcoming payment, it's essential to scrutinize the company's dividend history, yield, and growth rates. This article, powered by GuruFocus data, provides an in-depth look into Mills Music Trusts dividend performance and assesses its sustainability.
The Business of Mills Music Trust
Mills Music Trust holds the right to receive payment of a deferred contingent purchase price obligation relating to music and lyric copyright catalogue payable by EMI Mills Music Inc primarily in the United States. The payments of the contingent portion are based on royalty income generated by the catalogue.
Tracing Mills Music Trust's Dividend History
Mills Music Trust has maintained a consistent dividend payment record since 2000. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Decoding Mills Music Trust's Dividend Yield and Growth
As of today, Mills Music Trust has a 12-month trailing dividend yield of 7.83% and a 12-month forward dividend yield of 7.81%. This suggests an expectation of decreased dividend payments over the next 12 months.
Based on Mills Music Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Mills Music Trust stock as of today is approximately 7.83%.
Dividend Sustainability: 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 2021-12-31, Mills Music Trust's dividend payout ratio is 0.00.
Mills Music Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Mills Music Trust's profitability 1 out of 10 as of 2021-12-31, suggesting the dividend may not be sustainable. The company has reported net profit in 2 years out of the past 10 years.
Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Mills Music Trust's growth rank of 1 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Final Thoughts
Considering Mills Music Trust's dividend payments, growth rate, payout ratio, profitability, and growth metrics, investors should exercise caution. The company's low profitability and growth ranks indicate potential challenges in sustaining dividends. Therefore, it's crucial to keep an eye on these metrics and make informed decisions.
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