Rocky Brands (RCKY) Hikes Dividend, Boosts Shareholders' Wealth
Well known footwear and apparel company, Rocky Brands, Inc. RCKY, announced a hike of 10.7% in its quarterly dividend rate. The latest increase brings the quarterly dividend to 15.5 cents a share, up from the prior rate of 14 cents.
The raised dividend is payable on Sep 16, 2021 to shareholders held in record as at the close of business on Sep 2, 2021.
Although the company has been executing quarterly dividend payments, the recent hike instills greater optimism. The move indicates the company’s commitment to deliver long-term shareholder value as well as reflects on its confidence in financial position and ability to generate sufficient cash flows.
Speaking of financial position, the company had $8.4 million in cash and cash equivalents at the end of second-quarter 2021. The company’s cash position looks strong enough to meet the current portion of long-term debt worth $3.3 million. The latest dividend hike reflects the company’s dividend yield of roughly 1.2%, based on the closing share price of $50.54 on Aug 11. These aspects make the company’s dividend payment sustainable.
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Strategic Growth Efforts Bodes Well
A stable financial position also enabled Rocky Brands to support growth initiatives. The company has been undertaking product innovations, as western work wear picks up pace. This has been particularly favoring the company’s Durango, Rocky and Georgia brands. The company in its last earnings call highlighted that its newest brand inclusions namely, The Original Muck Boot Company and XTRATUF, are performing exceptionally well.
The company has also been focusing on managing inventory and boosting customer engagements. Such initiatives have been aiding growth at the company’s wholesale and retail categories. Its e-commerce sales have also continued to remain strong, on the back of efforts to expand website features and direct-to-consumer offerings. It is also focusing on successfully integrating its recent acquisitions and unlock greater growth opportunities. Such well-chalked growth measures contributed to the company’s performance during second-quarter 2021. Quarterly top- and bottom-line figures increased on a year-on-year basis.
Management believes that the company is well placed to continue with its growth momentum and keep boosting shareholders’ wealth, backed by a strong product portfolio as well as favorable market conditions. Shares of this Zacks Rank #3 (Hold) company have gained 40.7% in the past six months compared with the industry’s rise of 21.9%.
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