Unraveling the Dividend Story of Wolverine World Wide Inc
A Comprehensive Analysis of the Company's Dividend Performance and Sustainability
Wolverine World Wide Inc(NYSE:WWW) recently announced a dividend of $0.1 per share, payable on 2023-11-01, with the ex-dividend date set for 2023-09-29. 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 deep dive into Wolverine World Wide Inc's dividend performance and assess its sustainability.
About Wolverine World Wide Inc
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Wolverine World Wide Inc is engaged in designing, manufacturing, sourcing, marketing, licensing, and distributing branded footwear, apparel, and accessories. The company's segment includes Active Group; Work Group; Lifestyle Group and Other. It generates maximum revenue from the Active Group segment. Active Group segment consists of Merrell footwear and apparel, Saucony footwear and apparel, Sweaty Betty activewear, and Chaco footwear.
Wolverine World Wide Inc's Dividend History
Wolverine World Wide Inc has maintained a consistent dividend payment record since 1988. Dividends are currently distributed on a quarterly basis. Wolverine World Wide 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 10 years.
Wolverine World Wide Inc's Dividend Yield and Growth
As of today, Wolverine World Wide Inc currently has a 12-month trailing dividend yield of 5.20% and a 12-month forward dividend yield of 5.20%. This suggests an expectation of same dividend payments over the next 12 months. Wolverine World Wide Inc's dividend yield of 5.20% is near a 10-year high and outperforms than 77.28 of global competitors in the Manufacturing - Apparel & Accessories industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Extended to a five-year horizon, this rate increased to 9.70% per year. And over the past decade, Wolverine World Wide Inc's annual dividends per share growth rate stands at 7.50%. Based on Wolverine World Wide Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Wolverine World Wide Inc stock as of today is approximately 8.26%.
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 2023-06-30, Wolverine World Wide Inc's dividend payout ratio is 0.00.
Wolverine World Wide Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Wolverine World Wide Inc's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Wolverine World Wide 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 Wolverine World Wide Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Wolverine World Wide Inc's revenue has increased by approximately 8.90% per year on average, a rate that outperforms than approximately 68.11% of global competitors.
Concluding Thoughts
Given Wolverine World Wide Inc's consistent dividend payments, impressive growth rate, and healthy payout ratio, the company's dividends appear to be sustainable. The firm's robust profitability and growth metrics further cement this perspective. Therefore, for investors seeking steady income and growth, Wolverine World Wide Inc presents a compelling case.
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This article first appeared on GuruFocus.
