An In-depth Look at Guggenheim Strategic Opportunities Fund's Dividend Performance and Sustainability
Guggenheim Strategic Opportunities Fund(GOF, Financial) recently announced a dividend of $0.18 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-12. 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 Guggenheim Strategic Opportunities Funds dividend performance and assess its sustainability.
What Does Guggenheim Strategic Opportunities Fund Do?
Guggenheim Strategic Opportunities Fund is a diversified, closed-end management investment company. The investment objective of the firm is to maximize total return through a combination of current income and capital appreciation. The Fund seeks to combine a credit-managed fixed-income portfolio with access to a diversified pool of alternative investments and equity strategies.
A Glimpse at Guggenheim Strategic Opportunities Fund's Dividend History
Guggenheim Strategic Opportunities Fund has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Guggenheim Strategic Opportunities Fund's Dividend Yield and Growth
As of today, Guggenheim Strategic Opportunities Fund currently has a 12-month trailing dividend yield of 15.60% and a 12-month forward dividend yield of 15.60%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Guggenheim Strategic Opportunities Fund's dividend yield and five-year growth rate, the 5-year yield on cost of Guggenheim Strategic Opportunities Fund stock as of today is approximately 15.60%.
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 2023-05-31, Guggenheim Strategic Opportunities Fund's dividend payout ratio is 10.93. This may suggest that the company's dividend may not be sustainable.
Guggenheim Strategic Opportunities Fund's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Guggenheim Strategic Opportunities Fund's profitability 2 out of 10 as of 2023-05-31, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Guggenheim Strategic Opportunities Fund's growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Guggenheim Strategic Opportunities Fund's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Guggenheim Strategic Opportunities Fund's revenue has increased by approximately 42.90% per year on average, a rate that outperforms approximately 84.95% of global competitors.
Next Steps
In conclusion, while Guggenheim Strategic Opportunities Fund's dividend payments and growth rate are impressive, its payout ratio and profitability metrics raise questions about the sustainability of its dividends. As such, investors should conduct further research and consider these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks 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.
