Should Hugo Boss AG (FRA:BOSS) Be Part Of Your Portfolio?
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. Hugo Boss AG (FRA:BOSS) has returned to shareholders over the past 10 years, an average dividend yield of 4.00% annually. Should it have a place in your portfolio? Let’s take a look at Hugo Boss in more detail. View out our latest analysis for Hugo Boss
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is it the top 25% annual dividend yield payer?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share amount increased over the past?
Is is able to pay the current rate of dividends from its earnings?
Will the company be able to keep paying dividend based on the future earnings growth?
How well does Hugo Boss fit our criteria?
The current trailing twelve-month payout ratio for the stock is 78.69%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 75.12%, leading to a dividend yield of around 3.87%. Moreover, EPS should increase to €3.7.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Although BOSS’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.
Relative to peers, Hugo Boss has a yield of 3.35%, which is high for Luxury stocks but still below the market’s top dividend payers.
Next Steps:
Considering the dividend attributes we analyzed above, Hugo Boss is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three important factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for BOSS’s future growth? Take a look at our free research report of analyst consensus for BOSS’s outlook.
Valuation: What is BOSS worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether BOSS is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
