Oxford Industries Inc's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Oxford Industries Inc (NYSE:OXM)
Oxford Industries Inc (NYSE:OXM) recently announced a dividend of $0.65 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-12. As investors anticipate this upcoming payment, it is crucial to examine the company's dividend history, yield, and growth rates. Through GuruFocus data, we will delve into Oxford Industries Inc's dividend performance and evaluate its sustainability.
About Oxford Industries Inc
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Oxford Industries Inc is an apparel manufacturing company that designs, sources, markets, and distributes products under the brand names Tommy Bahama and Lilly Pulitzer. Tommy Bahama focuses on men's and women's sportswear and related products, while Lilly Pulitzer designs, sources, markets, and distributes upscale collections of women's and girl's dresses, sportswear, and related products. The majority of the company's revenue is generated from the Tommy Bahama division.
Oxford Industries Inc's Dividend History
Oxford Industries Inc has upheld a consistent dividend payment record since 1985, and dividends are currently distributed on a quarterly basis. Below is a chart that illustrates the annual Dividends Per Share for tracking historical trends.
Oxford Industries Inc's Dividend Yield and Growth
As of today, Oxford Industries Inc currently has a 12-month trailing dividend yield of 2.57% and a 12-month forward dividend yield of 2.79%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Oxford Industries Inc's annual dividend growth rate was 14.10%. This rate decreased to 11.20% per year when extended to a five-year horizon. However, over the past decade, Oxford Industries Inc's annual dividends per share growth rate stands at an impressive 10.80%.
Based on Oxford Industries Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Oxford Industries Inc stock as of today is approximately 4.37%.
Assessing Dividend Sustainability: 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, Oxford Industries Inc's dividend payout ratio is 0.24.
Oxford Industries Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Oxford Industries Inc's profitability 7 out of 10 as of 2023-07-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Oxford Industries Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Oxford Industries Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Oxford Industries Inc's revenue has increased by approximately 9.40% per year on average, a rate that outperforms approximately 69.44% 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, Oxford Industries Inc's earnings increased by approximately 36.00% per year on average, a rate that outperforms approximately 74.13% of global competitors.
Conclusion
Given Oxford Industries Inc's consistent dividend payments, impressive dividend growth rate, low payout ratio, good profitability, and strong growth metrics, the company presents a promising prospect for value investors seeking reliable dividend income. However, investors should continue to monitor these factors to ensure the sustainability of the dividends in the long run.
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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.
