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 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.
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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.
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 (%)||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.
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.
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