An in-depth analysis of the company's dividend history, yield, and sustainability
Hooker Furnishings Corp(HOFT, Financial) recently announced a dividend of $0.22 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-15. 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 Hooker Furnishings Corps dividend performance and assess its sustainability.
Understanding Hooker Furnishings Corp's Business
Hooker Furnishings Corp, formerly Hooker Furniture Corp, is a designer, marketer, and importer of case goods, leather furniture, and fabric-upholstered furniture for the residential, hospitality, and contract markets. The company also domestically manufactures premium residential custom leather and custom fabric-upholstered furniture. Its segments are the Hooker Branded, which includes a wide range of design categories, home entertainment, home office, dining, and bedroom furniture; the Home Meridian segment includes Samuel Lawrence Furniture and Pulaski Furniture; and the Domestic Upholstery segment includes the domestic upholstery manufacturing operations of Sam Moore and Shenandoah Furniture and others. The company generates most of its revenue from the Home Meridian Segment.
Exploring Hooker Furnishings Corp's Dividend History
Hooker Furnishings Corp has maintained a consistent dividend payment record since 2000. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Scrutinizing Hooker Furnishings Corp's Dividend Yield and Growth
As of today, Hooker Furnishings Corp currently has a 12-month trailing dividend yield of 4.36% and a 12-month forward dividend yield of 4.45%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Hooker Furnishings Corp's annual dividend growth rate was 10.40%. Extended to a five-year horizon, this rate decreased to 10.00% per year. And over the past decade, Hooker Furnishings Corp's annual dividends per share growth rate stands at 7.10%.
Based on Hooker Furnishings Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Hooker Furnishings Corp stock as of today is approximately 7.02%.
Evaluating Dividend Sustainability: 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, Hooker Furnishings Corp's dividend payout ratio is 0.00.
Hooker Furnishings Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hooker Furnishings Corp's profitability 6 out of 10 as of 2023-07-31, suggesting fair profitability. The company has reported net profit in 8 years out of past 10 years.
Assessing Growth Metrics for Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hooker Furnishings Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Hooker Furnishings Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hooker Furnishings Corp's revenue has increased by approximately -0.80% per year on average, a rate that underperforms than approximately 68.25% of global competitors.
Conclusion: Hooker Furnishings Corp's Dividend Prospects
With a consistent dividend payment history, a promising yield, and a reasonable growth rate, Hooker Furnishings Corp presents an appealing prospect for dividend investors. The company's low payout ratio and fair profitability rank further underscore the sustainability of its dividends. However, its underperformance in revenue growth compared to global competitors suggests a need for caution. Therefore, investors should closely monitor the company's future earnings and growth metrics to ensure continued dividend sustainability.
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