Dick's Sporting Goods (DKS) Gains on Quarterly Dividend Hike
Shares of Dick’s Sporting Goods, Inc. DKS gained more than 3%, following its announcement to increase quarterly dividend. With this, the company maintains its history of rewarding shareholders. This Zacks Rank #3 (Hold) company currently has a dividend yield of 2.8%.
The company’s board of directors has approved a quarterly dividend of 27.5 cents per share, up 22% from its earlier dividend of 22.5 cents per share. The dividend will be paid on Mar 29 to shareholders of record as on Mar 15, 2019. With this, the annualized dividend stands at $1.10 per share. Going ahead, it plans to approve future dividends with the release of final-quarter fiscal 2018 results.
This sporting goods retailer boasts a solid history of returning value to shareholders via dividends and share repurchases. In third-quarter fiscal 2018, the company bought back nearly 3.1 million shares for $107.9 million. Following this, Dick’s Sporting had nearly $467 million remaining under its existing share repurchase authorization that extends through 2021. In the past year, the company returned more than $417 million to its shareholders via dividends and share buybacks.
Additionally, the company’s robust cash flow provides it with the financial flexibility to make shareholder-friendly moves. In this regard, the company generated $160.5 million in cash from operating activities in the nine months of fiscal 2018 as compared to $125.5 million in the year-ago period.
All said, we believe that dividend hikes not only enhance shareholders’ return but raise the market value of the stock as well. Notably, shares of Dick’s Sporting, which belongs to the Retail Miscellaneous industry, have gained 5.7% in the past three months compared with the S&P 500’s growth of 1.8%.
Interested in Retail? Check These Solid Stocks
Columbia Sportswear Company COLM has long-term earnings growth rate of 10.9% and a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Crocs CROX, another Zacks #1 Ranked stock, has long-term earnings growth rate of 15%.
Under Armour UAA, currently carrying a Zacks Rank #2 (Buy), has long-term earnings growth rate of 22.7%.
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DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
Under Armour, Inc. (UAA) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
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