Assessing the Dividend Performance of AllianzGI Artificial Intelligence & Technology Opportunities Fund (AIO)
AllianzGI Artificial Intelligence & Technology Opportunities Fund (AIO) recently declared a dividend of $0.15 per share, with the ex-dividend date set for 2024-02-09 and the payment date scheduled for 2024-02-28. Investors are eagerly anticipating this upcoming payment, but it’s important to evaluate the company’s dividend history, yield, and growth rates to assess its sustainability.
Understanding AllianzGI Artificial Intelligence & Technology Opportunities Fund
AllianzGI Artificial Intelligence & Technology Opportunities Fund is a diversified, limited-term closed-end management investment company. Its objective is to provide total return through a combination of current income, current gains, and long-term capital appreciation.
Analyzing the Dividend History of AllianzGI Artificial Intelligence & Technology Opportunities Fund
AllianzGI Artificial Intelligence & Technology Opportunities Fund has maintained a consistent dividend payment track record since 2020, with dividends being distributed monthly. Here is a chart that illustrates the annual Dividends Per Share to track historical trends.
Breaking Down Dividend Yield and Growth
As of today, AllianzGI Artificial Intelligence & Technology Opportunities Fund has a 12-month trailing dividend yield of 9.10% and a 12-month forward dividend yield of 9.10%. This indicates an expectation of consistent dividend payments over the next 12 months.
Over the past three years, the fund has shown an impressive annual dividend growth rate of 76.90%. Based on the current dividend yield and the five-year growth rate, the 5-year yield on cost of AllianzGI Artificial Intelligence & Technology Opportunities Fund stock is approximately 9.10%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
A crucial factor in evaluating dividend sustainability is the payout ratio, which indicates the proportion of earnings that a company distributes as dividends. AllianzGI Artificial Intelligence & Technology Opportunities Fund currently has a dividend payout ratio of 0.00, suggesting that it retains a significant portion of its earnings for future growth and unforeseen challenges.
However, when it comes to profitability, GuruFocus ranks AllianzGI Artificial Intelligence & Technology Opportunities Fund 2 out of 10 as of 2023-01-31. This ranking raises concerns about the fund’s ability to sustain its dividend. Additionally, the company has reported a net profit in only 2 out of the past 10 years.
Examining Growth Metrics and Future Outlook
To ensure dividend sustainability, a company must demonstrate robust growth metrics. Unfortunately, AllianzGI Artificial Intelligence & Technology Opportunities Fund has a growth rank of 2 out of 10, indicating poor growth prospects. Consequently, the sustainability of its dividend may be in question.
Conclusion: A Cautionary Approach for Investors
In conclusion, while AllianzGI Artificial Intelligence & Technology Opportunities Fund offers an attractive dividend yield and has shown significant dividend growth in the past, there are concerns about the sustainability of its dividends. A low profitability rank and poor growth prospects raise red flags for investors. It is crucial to consider these factors alongside the company’s future potential and market conditions.
For income-seeking investors, it is essential to strike a balance between yield, stability, and growth potential. GuruFocus Premium users can utilize the High Dividend Yield Screener to identify high-yield stocks that align with their investment strategies.
Please note that the information provided in this article is based on historical data and analyst projections and should not be considered specific financial advice. It is important to conduct thorough research and consider individual investment objectives and financial circumstances before making any investment decisions.
Analyst comment
Negative news.
As an analyst, it is important for investors to approach AllianzGI Artificial Intelligence & Technology Opportunities Fund with caution. While it offers an attractive dividend yield and has shown dividend growth in the past, concerns over profitability and poor growth prospects raise red flags for sustainability. Investors should consider these factors, along with future potential and market conditions, before making any investment decisions.
