Yahoo Finance Shoe Carnival Inc's Dividend Analysis
Understanding the Dividend Prospects of Shoe Carnival Inc
Shoe Carnival Inc (NASDAQ:SCVL) recently announced a dividend of $0.14 per share, payable on 2024-04-22, with the ex-dividend date set for 2024-04-05. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Shoe Carnival Inc's dividend performance and assess its sustainability.
What Does Shoe Carnival Inc Do?
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Shoe Carnival Inc is a family footwear retailer that offers a broad assortment of dress, casual and athletic footwear for men, women, and children with an emphasis on national name brands such as Nike, Skechers, Adidas, Puma, HEYDUDE, Converse, Vans, and Crocs. They operate their business as one reportable segment based on the similar nature of products sold; merchandising, distribution, and marketing processes involved; target customers; and economic characteristics of our stores and e-commerce platforms. Its bricks-first, omnichannel approach provides customers easy access to a wide assortment of branded footwear for work, athletics, daily activities, and special events via a choice of delivery channel.
A Glimpse at Shoe Carnival Inc's Dividend History
Shoe Carnival Inc has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a quarterly basis. Shoe Carnival Inc has increased its dividend each year since 2013. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 11 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Shoe Carnival Inc's Dividend Yield and Growth
As of today, Shoe Carnival Inc currently has a 12-month trailing dividend yield of 1.25% and a 12-month forward dividend yield of 1.54%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Shoe Carnival Inc's annual dividend growth rate was 35.20%. Extended to a five-year horizon, this rate decreased to 25.20% per year. And over the past decade, Shoe Carnival Inc's annual dividends per share growth rate stands at an impressive 13.40%.
Based on Shoe Carnival Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Shoe Carnival Inc stock as of today is approximately 3.85%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-01-31, Shoe Carnival Inc's dividend payout ratio is 0.16.
Shoe Carnival Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Shoe Carnival Inc's profitability 8 out of 10 as of 2024-01-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Shoe Carnival Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Shoe Carnival Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Shoe Carnival Inc's revenue has increased by approximately 7.80% per year on average, a rate that outperforms approximately 58.96% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Shoe Carnival Inc's earnings increased by approximately 68.50% per year on average, a rate that outperforms approximately 91.34% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 30.00%, which outperforms approximately 86.43% of global competitors.
Concluding Insights on Dividend Viability
Considering Shoe Carnival Inc's consistent dividend payments, robust growth rate, prudent payout ratio, and strong profitability metrics, the company presents itself as an attractive option for value investors seeking dividend income. The forward-looking indicators suggest that Shoe Carnival Inc is not only maintaining but also potentially increasing its dividend yield, backed by solid financial health and growth prospects. Investors should, however, continue to monitor these metrics as they evolve over time to ensure ongoing sustainability. For those looking to expand their portfolios with similar opportunities, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
