Buckle Inc's Dividend Analysis
A Deep Dive into the Dividend Profile of Buckle Inc (NYSE:BKE)
Buckle Inc (NYSE:BKE) recently announced a dividend of $0.35 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-12. 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 Buckle Inc's dividend performance and assess its sustainability.
What Does Buckle Inc Do?
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Buckle Inc is a retailer of casual apparel, footwear, and accessories. The company retails medium to better-priced casual apparel, footwear, and accessories for fashion-conscious young men and women. It retails under the brand names 'Buckle' and 'The Buckle'. Buckle markets a wide selection of mostly brand-name casual apparel including denim, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear.
A Glimpse at Buckle Inc's Dividend History
Buckle Inc has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Buckle Inc's Dividend Yield and Growth
As of today, Buckle Inc currently has a 12-month trailing dividend yield of 4.21% and a 12-month forward dividend yield of 4.21%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Buckle Inc's annual dividend growth rate was 10.10%. Extended to a five-year horizon, this rate decreased to 5.90% per year. And over the past decade, Buckle Inc's annual dividends per share growth rate stands at 3.50%.
Based on Buckle Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Buckle Inc stock as of today is approximately 5.61%.
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 2023-07-31, Buckle Inc's dividend payout ratio is 0.29.
Buckle Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Buckle Inc's profitability 9 out of 10 as of 2023-07-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Buckle Inc's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Buckle Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Buckle Inc's revenue has increased by approximately 13.70% per year on average, a rate that outperforms than approximately 74.4% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Buckle Inc's earnings increased by approximately 33.80% per year on average, a rate that outperforms than approximately 76.48% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 26.40%, which outperforms than approximately 82.25% of global competitors.
Next Steps
In conclusion, Buckle Inc's consistent dividend payments, substantial dividend growth rate, low payout ratio, high profitability, and impressive growth metrics make it a promising investment for dividend-focused investors. However, it is essential for investors to conduct their due diligence and consider the company's overall financial health before investing.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
