Dick’s Sporting Goods, Inc. : DKS-US: Dividend Analysis : June 09th, 2017 (record date) : By the numbers : June 9, 2017

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).

Dick’s Sporting Goods, Inc.’s dividend yield is 2.06 percent and its dividend payout is 24.08 percent. This compares to a peer average dividend yield of 3.08 percent and a payout level of 37.74 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 67 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to April 30, 2017), DKS-US paid a high quality dividend, which represents a yield of 1.62% 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 1.56x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to April 30, 2017), 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 11.42x), investing cash flow (coverage of -8.30x), issuance cash flow (coverage of -1.90x) and twelve-month prior cash (coverage of 1.33x), for a total dividend coverage of 2.56x.

DKS-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.55x) and net share buybacks (coverage of -1.29x). Thus, the total coverage including share buybacks is 3.85x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2013-01-31 2014-01-31 2015-01-31 2016-01-31 2017-01-31 Latest
Dividend Yield (%) 5.21 1.01 1 1.48 1.2 2.06
Dividend Payout (%) 21.65 18.59 17.61 19.43 23.63 24.08

A complete list of metrics and analysis is available on the company page.

Company Profile

Dick’s Sporting Goods, Inc. engages in the retail of extensive assortment of authentic sports equipment, apparel, footwear, and accessories through a blend of associates, in-store services, and unique specialty shop-in-shops. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.