Yahoo Finance Guess? Inc's Dividend Analysis
Assessing the Sustainability of Guess? Inc's Upcoming Dividend
Guess? Inc(NYSE:GES) recently announced a dividend of $0.3 per share, payable on 2024-05-03, with the ex-dividend date set for 2024-04-16. 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 Guess? Inc's dividend performance and assess its sustainability.
What Does Guess? Inc Do?
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Guess? Inc designs, markets distributes, and licenses contemporary apparel and accessories that reflect European fashion sensibilities and American Lifestyle under brands including Guess, Marciano, and G by Guess. The company has five reportable segments: Americas Retail, Americas Wholesale, Europe, Asia, and licensing. Geographically, the company derives maximum revenue from the United States.
A Glimpse at Guess? Inc's Dividend History
Guess? Inc has maintained a consistent dividend payment record since 2007, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Guess? Inc's Dividend Yield and Growth
As of today, Guess? Inc currently has a 12-month trailing dividend yield of 4.08% and a 12-month forward dividend yield of 4.35%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Guess? Inc's annual dividend growth rate was 71.00%. Extended to a five-year horizon, this rate decreased to 10.30% per year. And over the past decade, Guess? Inc's annual dividends per share growth rate stands at -2.60%.
Based on Guess? Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Guess? Inc stock as of today is approximately 6.66%.
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, Guess? Inc's dividend payout ratio is 0.36.
Guess? Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Guess? Inc's profitability 7 out of 10 as of 2024-01-31, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Guess? Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Guess? Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Guess? Inc's revenue has increased by approximately 10.80% per year on average, a rate that outperforms approximately 66.03% of global competitors.
Next Steps for Investors
Considering Guess? Inc's consistent dividend payments, robust dividend growth rate, manageable payout ratio, and strong profitability and growth metrics, the company stands out as a potentially attractive option for value investors seeking income. The upcoming dividend payment further highlights the company's commitment to returning value to shareholders.
For those looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover other companies with similar or better dividend profiles. With a data-driven approach, investors can make informed decisions and potentially enhance their investment strategy.
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.
