Our analysis is based on comparing Dick’s Sporting Goods, Inc. with the following peers – Hibbett Sports, Inc., Cabela’s Incorporated, Big 5 Sporting Goods Corporation, Sportsman’s Warehouse Holdings, Inc. and Sports Direct International plc Unsponsored ADR (HIBB-US, CAB-US, BGFV-US, SPWH-US and SDISY-US).
Dividend Quality Overview
- Over the last twelve months (prior to October 31, 2016), DKS-US paid a high quality dividend, which represents a yield of 1.15% 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 4 were high quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 1.28x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to October 31, 2016), DKS-US paid a high 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 10.67x), investing cash flow (coverage of -6.67x), issuance cash flow (coverage of -2.82x) and twelve-month prior cash (coverage of 1.11x), for a total dividend coverage of 2.28x.
DKS-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.66x) and net share buybacks (coverage of -2.19x). Thus, the total coverage including share buybacks is 4.47x, 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’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.
|Dividend Yield (%)||1.21||5.21||1.01||1||1.48||1.18|
|Dividend Payout (%)||23.81||21.65||18.59||17.61||19.43||20.46|
A complete list of metrics and analysis is available on the company page.
Dick’s Sporting Goods, Inc. is a sporting goods retailer, which engages in offering brand name sporting goods equipment, apparel, and footwear. Its products include belt, gloves, hats, insoles, athletic tape, braces and support, cups and athletic supporters, action cameras, drones, metal detectors, backpacks and duffles, bedding and blankets, and luggage. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.
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