A look at VFC’s stock market returns
After losing 17% of its value in 2015 and 14% in 2016, VF Corporation’s (VFC) stock has risen 4.5% this year as of July 11. The company is currently trading at $55.72, ~17% below its 52-week high price.
In comparison, apparel peers PVH (PVH) and Coach (COH) have delivered stunning returns of 24% and 35%, respectively. Under Armour (UAA), Michael Kors (KORS), and Ralph Lauren (RL) are down 30%, 22.8%, and 20.6% YTD, respectively. The S&P 500 Apparel and Accessories Index, which includes VFC and the above companies, has risen 1.3% to date. The S&P 500 Index (SPX) is also up 8.3% YTD.
A look at VFC’s dividends and share repurchase plan
VFC is a regular dividend-paying company that has increased its dividends for 44 consecutive years. The company is a dividend aristocrat and is part of a select group of S&P 500 Index companies that have increased dividends for at least 25 consecutive years. It’s also part of the SPDR S&P Dividend ETF (SDY), which invests 1.2% of its portfolio in the company.
The company also repurchases shares regularly to boost investor returns. It purchased 8.2 million shares for $438 million during the first quarter. In March, VFC approved a share repurchase plan of $5 billion. The management plans to return $8 billion to shareholders between fiscal 2017 and fiscal 2021 through dividends and share buybacks.
VFC has a high dividend payout of ~58%. Its dividend yield is hovering around 3.2%. Apparel peers Hanesbrands and Ralph Lauren have similar dividend yields of 2.7% and 3.0% respectively.
Move on to the next section to read about analyst recommendations for VFC.