La-Z-Boy Inc's Dividend Analysis
Assessing the Upcoming Dividend and Company's Financial Health
La-Z-Boy Inc (NYSE:LZB) recently announced a dividend of $0.2 per share, payable on 2023-12-18, with the ex-dividend date set for 2023-12-08. 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 La-Z-Boy Inc's dividend performance and assess its sustainability.
What Does La-Z-Boy Inc Do?
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La-Z-Boy Inc is a U.S.-based company that manufactures, distributes, and retails upholstery furniture products. It is a producer of reclining chairs and distributors of residential furniture in the U.S. The company chiefly operates in the United States but also has secondary operations in Canada and other countries. The company's reportable segments include the Wholesale segment, which manufactures and imports upholstered furniture; and Retail, which sells upholstered and case goods furniture to the end consumer. The majority of the company's revenue is derived from its Wholesale segment. Some of the core brands of the firm include England, Kincaid, American Drew, and Hammary.
A Glimpse at La-Z-Boy Inc's Dividend History
La-Z-Boy Inc has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down La-Z-Boy Inc's Dividend Yield and Growth
As of today, La-Z-Boy Inc currently has a 12-month trailing dividend yield of 1.98% and a 12-month forward dividend yield of 2.21%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, La-Z-Boy Inc's annual dividend growth rate was 8.70%. Extended to a five-year horizon, this rate decreased to 6.90% per year. And over the past decade, La-Z-Boy Inc's annual dividends per share growth rate stands at an impressive 16.80%.
Based on La-Z-Boy Inc's dividend yield and five-year growth rate, the 5-year yield on cost of La-Z-Boy Inc stock as of today is approximately 2.76%.
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 2023-10-31, La-Z-Boy Inc's dividend payout ratio is 0.26.
La-Z-Boy Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks La-Z-Boy Inc's profitability 9 out of 10 as of 2023-10-31, 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. La-Z-Boy 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 La-Z-Boy Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. La-Z-Boy Inc's revenue has increased by approximately 14.20% per year on average, a rate that outperforms approximately 76.94% 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, La-Z-Boy Inc's earnings increased by approximately 19.80% per year on average, a rate that outperforms approximately 70.37% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 16.90%, which outperforms approximately 72.48% of global competitors.
Conclusion: Evaluating La-Z-Boy Inc's Dividend Prospects
In conclusion, La-Z-Boy Inc's upcoming dividend, historical payment consistency, and growth rates paint a picture of a company committed to rewarding shareholders. The robust payout ratio and profitability rank indicate a sustainable dividend policy, while the impressive growth metrics provide confidence in the company's future prospects. Investors looking for dividend-paying stocks with solid fundamentals may find La-Z-Boy Inc an attractive option. Will La-Z-Boy Inc continue to provide investors with comfortable returns? Only time will tell, but the current analysis offers a strong foundation for optimism.
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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.
