A look HBI’s stock market returns
After losing 27% of its value in 2016, Hanesbrands (HBI) stock has risen more than 9% this year. The company is trading at $23.24, 21.5% below its 52-week high.
In comparison, apparel peers The Gap (GPS) and VF Corporation (VFC) have risen 6% and 10%, respectively, while Michael Kors (KORS) and Ralph Lauren (RL) have fallen 18% and 17%, respectively, year-to-date (or YTD). PVH Corporation (PVH) has been the best-performing branded apparel company with a YTD rise of 30%.
HBI has outperformed the seven-company S&P 500 Apparel and Accessories Index, which has risen 5.6% YTD. It has, however, underperformed the S&P 500 Index (SPX). SPX has risen 10.4% YTD.
Investors wanting exposure to HBI can consider the iShares Morningstar Mid-Cap ETF (JKG), which invests ~0.5% of its portfolio in HBI.
HBI’s dividends and share repurchase plan
HBI pays regular dividends and repurchases shares in order to boost investors’ returns. The company last announced its dividend in April 2017, when it increased its dividend per share by 36% to $0.15. It also repurchased ~$300 million worth of shares in 1Q17.
In 2016, HBI paid $550 million to investors via dividends and share buybacks.
HBI has a dividend payout ratio of ~10.5%, lower than VF Corporation’s 57.8% payout ratio and The Gap’s 53% payout ratio but better than PVH Corporation’s 3.1% payout ratio.
HBI stock offers a dividend yield of 2.6%, compared to the dividend yields of 3%, 3.9%, and 0.1%, respectively, for VF Corporation, The Gap, and PVH.
Read the next article to learn about analysts’ recommendations for HBI.