Comparing PVH’s stock returns
PVH (PVH) has delivered an excellent performance this year. The company is sitting at a year-to-date (or YTD) gain of 48%. PVH has outperformed the S&P 500 Apparel and Accessories Index, which has fallen more than 3% to date. The S&P 500 Apparel and Accessories Index tracks Ralph Lauren (RL), Hanesbrands (HBI), VF (VFC), Coach (COH), PVH, Michael Kors (KORS), and Under Armour (UA).
PVH has outperformed each of the index companies of the S&P 500 Apparel and Accessories Index. While Michael Kors, Coach, and Ralph Lauren have recorded YTD gains of 21%, 18%, and 1% respectively, VF, Under Armour, and Hanesbrands were sitting at YTD losses of 8%, 26%, and 17%, respectively, as of November 24, 2016.
Comparing PVH’s dividend payout
As discussed, PVH’s stock returns have been the best in the apparel industry. However, the same cannot be said about its dividends, which a company typically uses to enhance total investor returns.
Although PVH is a consistent dividend payer, the company has not increased its dividend per share in the last 15 years. It offers a fixed dividend of $0.04 per share every quarter.
The company has a dividend payout ratio of 2.2%, which is the lowest among dividend offerings of branded apparel companies. Coach, VF, and Ralph Lauren have dividend payout ratios of 78.1%, 50.8%, and 84%, respectively. The dividend payout ratio indicates the percentage of net income disbursed to shareholders in the form of dividends. ETF investors seeking to add exposure to PVH could consider the iShares Morningstar Mid-Cap ETF (JKG), which invests 0.52% of its portfolio in PVH.