Our analysis is based on comparing Caleres, Inc. with the following peers – Skechers U.S.A., Inc. Class A, Steven Madden, Ltd., Wolverine World Wide, Inc., Finish Line, Inc. Class A, Foot Locker, Inc., Rocky Brands, Inc., Shoe Carnival, Inc., DSW Inc. Class A and Genesco Inc. (SKX-US, SHOO-US, WWW-US, FINL-US, FL-US, RCKY-US, SCVL-US, DSW-US and GCO-US).
Caleres, Inc.’s dividend yield is 1.05 percent and its dividend payout is 19.10 percent. This compares to a peer average dividend yield of 1.40 percent and a payout level of 23.21 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to April 30, 2017), CAL-US paid a low quality dividend, which represents a yield of 1.05% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 5.95x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to April 30, 2017), CAL-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 15.24x), investing cash flow (coverage of -26.01x), issuance cash flow (coverage of 5.36x) and twelve-month prior cash (coverage of 12.40x), for a total dividend coverage of 6.95x.
CAL-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -1.61x). Thus, the total coverage including share buybacks is 8.57x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||1.63||1.18||0.99||1.04||0.95||1.05|
|Dividend Payout (%)||43.75||24.31||14.84||15.14||18.42||19.1|
A complete list of metrics and analysis is available on the company page.
Caleres, Inc. is a global footwear retailer and wholesaler. It offers retail shoe stores and e-Commerce websites as well as the design, sourcing and marketing footwear for women and men. The company operates through two segments: Famous Footwear and Brand Portfolio. The Famous Footwear segment provides brand-name athletic, casual and dress shoes for the entire family. Brand Portfolio segment sells footwear on a wholesale basis to retailers. Caleres was founded by George Warren Brown in 1878 and is headquartered in St. Louis, MO.
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