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Under Armour’s Returns To Shareholders Versus Its Peers

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Returns

Under Armour’s (UA) stock price saw explosive growth over the past five years. In the past five years, its returns to shareholders were over 60%. It led above other companies in the market. In the past year, Under Armour’s stock provided total returns at just over 40%.

Skechers (SKX) has been the best performer in the past year. It had returns at 126%. Skechers’ shoes have been steadily gaining market share in the athletic footwear market. Adidas (ADDAF) has been the worst performer in the peer group. In the past year, it had negative returns of over 33%.

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Dividend policy

While Under Armour has been the best performer over the five-year timeframe, VF Corp. (VFC) and NIKE (NKE) also provided consistent returns to shareholders. While Under Armour hasn’t paid out a dividend, its returns include dividends as well.

VF Corp. and NIKE provided dividends per share, or DPS, of $0.92 and $0.93, respectively, in the last fiscal year. In fact, they’ve been steadily increasing the DPS—VFC for 42 consecutive years and NIKE for 13 consecutive years. Dividends can stabilize returns over the long term. They can result in less return volatility, especially in lean years.

To learn more, read Volatility Considerations: Why Invest In VF Corp.?  and Do NIKE’s Shareholders Enjoy A Best-Of-Both-Worlds Advantage?

VF Corp., NIKE, and Under Armour are part of the SPDR Consumer Discretionary Select Sector ETF (XLY). They form 1.14%, 3.07%, and 0.53% of XLY’s holdings, respectively.

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