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VF Corp. Stock Offers a Better Dividend Yield than Most Peers

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A look at VFC’s stock market returns

After delivering a 14% decline in the stock market in 2016, VF Corporation’s (VFC) stock price has already fallen 5.7% during 2017 through February 10. The company is currently trading at $50.32, ~33% below its 52-week-high price.

Apparel peers Under Armour (UAA), Michael Kors (KORS), and Ralph Lauren (RL) are down 26%, 11%, and 12% YTD, respectively.

The S&P 500 Apparel and Accessories Index is a seven-company index covering Ralph Lauren (RL), HanesBrands (HBI), VF Corp., Coach (COH), PVH Corp. (PVH), Michael Kors, and Under Armour (UAA). The S&P 500 Apparel and Accessories Index is down 6.6% YTD.

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A look at VFC’s dividend payout

VF Corporation is a dividend aristocrat and is included in the select group of S&P 500 Index companies that have increased dividends for at least 25 consecutive years. The company is included in the holdings of the SPDR S&P Dividend ETF (SDY), which invests ~1.2% of its portfolio in the company.

VFC has increased dividends for 44 consecutive years. It recently paid a quarterly dividend per share of $0.42, which meant a 13.5% YoY increase. The company has increased its dividend payments 15% over the last eight years.

VFC’s stock offers a one-year forward dividend yield of 3.3%, better than its peers Hanesbrands, PVH Corp., and Ralph Lauren, which have respective dividend yields of 2.7%, 0.2%, and 2.7%. Coach, however, offers a higher dividend yield of 3.8%.

VF Corporation has a dividend payout of 50%, which means that the company distributes 50% of its earnings to shareholders via dividends. In comparison, PVH Corp. and HBI have respective payouts of 2.1% and 31%. Coach has a payout as high as 74%.

In the final section, we’ll look at analyst recommendations and valuations of VFC.

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