Invesco Trust for Investment Grade Municipals's Dividend Analysis
In This Article:
Assessing the Sustainability of Invesco Trust for Investment Grade Municipals's Upcoming Dividend
Invesco Trust for Investment Grade Municipals (NYSE:VGM) recently announced a dividend of $0.03 per share, payable on 2024-01-31, with the ex-dividend date set for 2024-01-16. 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 Invesco Trust for Investment Grade Municipals's dividend performance and assess its sustainability.
What Does Invesco Trust for Investment Grade Municipals Do?
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Invesco Trust for Investment Grade Municipals is active in the financial services sector. Its investment objective is to provide common shareholders with a high level of current income exempt from federal income tax, consistent with preservation of capital.
A Glimpse at Invesco Trust for Investment Grade Municipals's Dividend History
Invesco Trust for Investment Grade Municipals has maintained a consistent dividend payment record since 1992. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Invesco Trust for Investment Grade Municipals's Dividend Yield and Growth
As of today, Invesco Trust for Investment Grade Municipals currently has a 12-month trailing dividend yield of 4.47% and a 12-month forward dividend yield of 4.20%. This suggests an expectation of decrease dividend payments over the next 12 months.
Invesco Trust for Investment Grade Municipals's dividend yield of 4.47% is near a 10-year low and underperforms than 62.1% of global competitors in the Asset Management industry, suggesting that the company's dividend yield may not be a compelling proposition for income investors.
Over the past three years, Invesco Trust for Investment Grade Municipals's annual dividend growth rate was -4.60%. Extended to a five-year horizon, this rate decreased to -5.00% per year. Based on Invesco Trust for Investment Grade Municipals's dividend yield and five-year growth rate, the 5-year yield on cost of Invesco Trust for Investment Grade Municipals stock as of today is approximately 3.46%.
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 2023-08-31, Invesco Trust for Investment Grade Municipals's dividend payout ratio is 46.25, which may suggest that the company's dividend may not be sustainable.