VFC’s stock performance after its 3Q17 results
VF Corporation’s (VFC) stock price inched higher as the company posted better-than-expected 3Q17 results and improved guidance. VFC stock touched its two-year high of $71.94 on October 23 and finally closed 5.4% higher at $69.93.
The company posted a YTD (year-to-date) gain of 34.0%. Its performance is particularly impressive when compared to the previous two years—the stock lost 17.0% in 2015 and 14.0% in 2016.
Discussing the performance of other apparel peers
The performance of branded apparel stocks has been quite satisfactory so far this year. The seven-company S&P 500 Apparel and Accessories Index, which also includes VFC, has gained 12.0% YTD. In comparison, the S&P 500 Index (SPX) is up ~15.0% year-to-date.
VF Corporation (VFC) is a dividend aristocrat, meaning the company is included in the select group of S&P 500 Index companies that have increased dividends for at least 25 successive years. In fact, VFC has increased its dividends for 44 consecutive years.
Along with its 3Q17 results, VFC’s board of directors announced a dividend hike of 10.0% to $0.42 per share. The dividend is payable on December 18, 2017.
VFC stock offers a one-year forward dividend yield of 2.6%. The company has a high dividend payout of 52.0%. This means that VFC uses more than 50.0% of its earnings to fund dividends. In comparison, Gap (GPS), which has a higher forward yield of 3.4%, uses only 43.0% of its profits to fund its dividends.
VFC is included in the holdings of the SPDR S&P Dividend ETF (SDY), which invests 1.3% of its portfolio in the company.
In the final part of this series, we’ll look at the recent analyst recommendations on VF Corporation.