Invesco Value Municipal Income Trust's Dividend Analysis
In This Article:
Understanding the Dividend Dynamics of Invesco Value Municipal Income Trust (NYSE:IIM)
Invesco Value Municipal Income Trust (NYSE:IIM) recently announced a dividend of $0.04 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 Value Municipal Income Trust's dividend performance and assess its sustainability.
What Does Invesco Value Municipal Income Trust Do?
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Invesco Value Municipal Income Trust is a diversified, closed-end management investment company. Its investment objective is to provide common shareholders with current income which is exempt from federal income tax.
A Glimpse at Invesco Value Municipal Income Trust's Dividend History
Invesco Value Municipal Income Trust has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Invesco Value Municipal Income Trust's Dividend Yield and Growth
As of today, Invesco Value Municipal Income Trust currently has a 12-month trailing dividend yield of 4.70% and a 12-month forward dividend yield of 4.50%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Invesco Value Municipal Income Trust's annual dividend growth rate was -1.80%. Extended to a five-year horizon, this rate increased to -1.10% per year. Based on Invesco Value Municipal Income Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Invesco Value Municipal Income Trust stock as of today is approximately 4.45%.
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 Value Municipal Income Trust's dividend payout ratio is 28.83, which may suggest that the company's dividend may not be sustainable.