• Thu. Sep 28th, 2023

    Analyzing the Dividend Performance and Sustainability of CBRE Clarion Global Real Estate Income Fund (IGR)

    ByNuala Hafner

    Sep 19, 2023
    Analyzing the Dividend Performance and Sustainability of CBRE Clarion Global Real Estate Income Fund (IGR)

    CBRE Clarion Global Real Estate Income Fund (IGR) recently declared a dividend of $0.06 per share, payable on September 29, 2023. As investors await this payment, it is important to examine the company’s dividend history, yield, and growth rates to determine its sustainability.

    CBRE Clarion Global Real Estate Income Fund is a diversified, closed-end management investment company based in the United States. Its primary objective is to generate high current income, with capital appreciation as a secondary goal. The fund primarily invests in income-producing real estate securities across developed markets in North America, Europe, Australia, and Asia.

    IGR has a consistent dividend payment record since 2009, distributing dividends on a monthly basis. The company’s annual Dividends Per Share can be seen in the provided chart, showcasing the stability of its dividend payments over the years.

    With a 12-month trailing dividend yield and a 12-month forward dividend yield of 14.81%, IGR is attractive to income investors. Its dividend yield, near a 10-year high, outperforms a majority of global competitors in the Asset Management industry. Over the past three years, IGR has had an annual dividend growth rate of 2.20%, which decreases to 0.90% over a five-year period. The 5-year yield on cost for IGR stock is approximately 15.36%.

    To assess the sustainability of IGR’s dividend, the payout ratio and profitability must be evaluated. The dividend payout ratio indicates the portion of earnings that is distributed as dividends. As of June 30, 2023, IGR has a dividend payout ratio of 0.00, suggesting that the company retains a significant portion of its earnings.

    However, IGR’s profitability rank of 2 out of 10 raises concerns about the long-term sustainability of its dividend. The company has reported net profit in only three out of the past ten years.

    In terms of growth prospects, IGR has a growth rank of 2 out of 10, indicating poor growth potential. This could potentially impact the sustainability of its dividend payments in the future.

    While IGR’s impressive dividend yield and consistent payment history may be enticing, investors should carefully consider the payout ratio, profitability, and growth prospects before making investment decisions.

    Source: GuruFocus (URL removed)