Comparing PVH Corp’s stock returns to that of peers
PVH Corp (PVH) delivered an above-average performance in the stock market during 2016, recording gains of 23%. Apparel peers Ralph Lauren (RL), Hanesbrands (HBI), and VF Corporation (VFC), on the other hand, fell 19%, 27%, and 14%, respectively, during the year.
PVH is currently trading at $93.83, which represents a YTD (year-to-date) gain of 4%. Its performance continues to be better than its major peers. While Ralph Lauren and Hanesbrands have plunged 10.3% and 4.9%, respectively, VFC has gained around 1.5% YTD.
PVH has also outperformed the S&P 500 Apparel and Accessories Index, which has fallen more than 4.5% YTD (year-to-date). The S&P 500 Apparel and Accessories Index tracks Ralph Lauren, Hanesbrands, VF Corporation, Coach (COH), PVH, Michael Kors (KORS), and Under Armour (UA).
Among the above index companies, only Coach has outperformed PVH Corp this year, having risen 13.3%.
Comparing PVH Corp’s dividend payout to peers
Though PVH is a consistent dividend payer, it has not increased its dividend per share for 15 years. It offers a very low and fixed dividend of $0.04 every quarter. Its current dividend payout ratio of 2.1% is the lowest among dividend-offering branded apparel companies. Remember, the dividend payout ratio indicates the percentage of net income disbursed to shareholders in the form of dividends. Coach’s and VFC’s dividend payout ratios are 74% and 54%, respectively.
PVH Corp’s stock offers a one-year forward yield of 0.2%. By comparison, dividend yields of Coach and VFC are hovering around 3.5% and 3.2%, respectively.
Notably, ETF investors seeking to add exposure to PVH might consider the First Trust Consumer Discretionary AlphaDEX (FXD), which invests 1.36% of its portfolio in PVH.