A look HBI’s stock market returns
After falling around 27% in 2016, Hanesbrands’ (HBI) stock is currently in the green, although the year-to-date (or YTD) gain is less than 1%. The company is trading at $21.69, ~40% below its 52-week high price.
In comparison, apparel peers PVH Corp (PVH) and VF Corp (VFC) have gained 9% and 4.7%, respectively, while Under Armour (UAA), Michael Kors (KORS), and Ralph Lauren (RL) are down 35%, 14.5%, and 12.7% YTD.
HBI has performed better than the seven-company S&P 500 Apparel and Accessories Index, which is down 3.5% YTD. All the above-mentioned companies, including HBI, form part of the index.
It has, however, underperformed the S&P 500 Index (SPX). SPX has gained 4.9% YTD (all information as of April 21, 2016).
Investors wanting exposure to HBI can consider pooled investment vehicles like the iShares Morningstar Mid-Cap Growth ETF (JKH), which invests 0.55% of its portfolio in the company.
A look at HBI’s dividends and share repurchase plan
HBI pays regular dividends to its shareholders. It announced a dividend per share of 15 cents in January, which was a 36% YoY jump. The company paid $550 million to investors via dividends and share buybacks in fiscal 2016.
Comparing dividend yields
HBI has a dividend payout of around 31%, meaning it distributes more than 30% of its earnings to shareholders. Its stock offers a dividend yield of 2.7%, in line with most dividend-paying apparel companies. VF Corp, The Gap (GPS), and Ralph Lauren have dividend yields of 3.1%, 3.7%, and 2.7%, respectively.
Read on to the next part of this series to learn about analyst recommendations and current valuations of HBI.