Gabelli Utility Trust's Dividend Analysis
In This Article:
An In-depth Look at Gabelli Utility Trust's Dividend Performance and Sustainability
Gabelli Utility Trust (NYSE:GUT) recently announced a dividend of $0.05 per share, payable on 2023-11-22, with the ex-dividend date set for 2023-11-14. 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 delve into Gabelli Utility Trust's dividend performance and assess its sustainability.
About Gabelli Utility Trust
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Gabelli Utility Trust operates as a diversified closed-end investment management company. The fund's primary objective is the long-term growth of capital and income. To achieve its objective, the fund may invest 80% of its assets in common stocks and other securities of foreign and domestic companies involved in providing products, services, or equipment for the generation or distribution of electricity, gas, & water; and telecommunications services or infrastructure operations. It invests in various sectors, of which Electric Integrated, Water, Telecommunications, and U.S. Government Obligations account for the majority weightage.
Gabelli Utility Trust's Dividend History
Gabelli Utility Trust has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Understanding Gabelli Utility Trust's Dividend Yield and Growth
As of today, Gabelli Utility Trust currently has a 12-month trailing dividend yield of 10.24% and a 12-month forward dividend yield of 10.24%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Gabelli Utility Trust's annual dividend growth rate was 2.30%. Based on Gabelli Utility Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Gabelli Utility Trust stock as of today is approximately 10.24%.
Is Gabelli Utility Trust's Dividend Sustainable?
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 2023-06-30, Gabelli Utility Trust's dividend payout ratio is 0.00. Gabelli Utility Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Gabelli Utility Trust's profitability 2 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 3 years out of past 10 years.