Shoe Carnival Inc's Dividend Analysis
Understanding the Dividend Dynamics of Shoe Carnival Inc
Shoe Carnival Inc (NASDAQ:SCVL) recently announced a dividend of $0.12 per share, payable on 2024-01-22, with the ex-dividend date set for 2024-01-05. 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 Shoe Carnival Inc's dividend performance and assess its sustainability.
What Does Shoe Carnival Inc Do?
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Shoe Carnival Inc is a family footwear retailer that offers a broad assortment of dress, casual and athletic footwear for men, women, and children with an emphasis on national name brands such as Nike, Skechers, Adidas, Puma, HEYDUDE, Converse, Vans, and Crocs. It operates a retail-focused business model that aims to deliver the footwear shopping experience with the national name brands desired by its customers. Its bricks-first, omnichannel approach provides customers easy access to a wide assortment of branded footwear for work, athletics, daily activities, and special events via a choice of delivery channel.
A Glimpse at Shoe Carnival Inc's Dividend History
Shoe Carnival Inc has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a quarterly basis. Shoe Carnival Inc has increased its dividend each year since 2013. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 11 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Shoe Carnival Inc's Dividend Yield and Growth
As of today, Shoe Carnival Inc currently has a 12-month trailing dividend yield of 1.46% and a 12-month forward dividend yield of 1.68%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Shoe Carnival Inc's annual dividend growth rate was 28.90%. Extended to a five-year horizon, this rate decreased to 19.40% per year. And over the past decade, Shoe Carnival Inc's annual dividends per share growth rate stands at an impressive 12.60%.
Based on Shoe Carnival Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Shoe Carnival Inc stock as of today is approximately 3.54%.
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, Shoe Carnival Inc's dividend payout ratio is 0.14.
Shoe Carnival Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Shoe Carnival Inc's profitability 8 out of 10 as of 2023-10-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Shoe Carnival Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Shoe Carnival Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Shoe Carnival Inc's revenue has increased by approximately 8.70% per year on average, a rate that outperforms approximately 64.03% 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, Shoe Carnival Inc's earnings increased by approximately 39.50% per year on average, a rate that outperforms approximately 80.12% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 45.60%, which outperforms approximately 92.95% of global competitors.
Next Steps
Shoe Carnival Inc stands out as a company with a solid track record of dividend payments, a commendable growth in dividend rates, and a prudent payout ratio that underscores financial stability. The company's profitability and growth metrics paint a picture of a business that is not only maintaining its competitive edge but also expanding its financial health, which is a green flag for dividend sustainability. Investors considering Shoe Carnival Inc for its dividend prospects should be encouraged by these indicators. However, they should also stay informed about the broader economic conditions and the company's operational performance, which could influence future dividend payments and growth.
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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.
