A deep dive into the company's dividend history, yield, growth rates, and its future prospects
Dick's Sporting Goods Inc (DKS, Financial) recently announced a dividend of $1 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-14. 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 deep dive into Dick's Sporting Goods Inc's dividend performance and assess its sustainability.
What Does Dick's Sporting Goods Inc Do?
Dick's Sporting Goods Inc retails athletic apparel, footwear, and equipment for sports. Dick's operates digital platforms, about 725 stores under its namesake brand (including outlet stores), and about 135 specialty stores under the Golf Galaxy, Moosejaw, and Public Lands nameplates. Dick's carries private-label merchandise and national brands such as Nike, The North Face, Under Armour, Callaway Golf, and TaylorMade. Based in the Pittsburgh area, Dick's was founded in 1948 by the father of current executive chairman and controlling shareholder Edward Stack.
A Glimpse at Dick's Sporting Goods Inc's Dividend History
Dick's Sporting Goods Inc has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Dick's Sporting Goods Inc has increased its dividend each year since 2012, earning it the title of a dividend achiever, an honor given to companies that have increased their dividend each year for at least the past 11 years.
Breaking Down Dick's Sporting Goods Inc's Dividend Yield and Growth
As of today, Dick's Sporting Goods Inc currently has a 12-month trailing dividend yield of 2.68% and a 12-month forward dividend yield of 3.60%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, Dick's Sporting Goods Inc's annual dividend growth rate was 21.00%. Extended to a five-year horizon, this rate increased to 22.60% per year. Over the past decade, Dick's Sporting Goods Inc's annual dividends per share growth rate is an impressive 15.70%.
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 2023-07-31, Dick's Sporting Goods Inc's dividend payout ratio is 0.26. Dick's Sporting Goods Inc's profitability rank of 8 out of 10 suggests good profitability prospects. The company has reported positive net income for each of the years over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Dick's Sporting Goods Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Dick's Sporting Goods Inc's revenue has increased by approximately 8.20% per year on average, a rate that outperforms approximately 64.85% of global competitors. The company's 3-year EPS growth rate of 47.80% per year on average outperforms approximately 84.42% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 38.00% outperforms approximately 89.63% of global competitors.
Next Steps
In conclusion, Dick's Sporting Goods Inc's consistent dividend payments, impressive growth rates, and robust profitability metrics make it a compelling consideration for dividend-focused investors. Its strong growth metrics and high profitability rank further solidify its position as a sustainable dividend payer. However, as with any investment decision, it is crucial to conduct thorough research and consider the company's overall financial health and market conditions before investing.
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