Our analysis is based on comparing PVH Corp. with the following peers – Oxford Industries, Inc., V.F. Corporation, Hanesbrands Inc., Kate Spade & Co, G-III Apparel Group, Ltd., Delta Apparel, Inc., Ralph Lauren Corporation Class A and Perry Ellis International, Inc. (OXM-US, VFC-US, HBI-US, KATE-US, GIII-US, DLA-US, RL-US and PERY-US).
PVH Corp.’s dividend yield is 0.16 percent and its dividend payout is 2.10 percent. This compares to a peer average dividend yield of 1.97 percent and a payout level of 26.61 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 83 out of a possible score of 100 looks sustainable.
Dividend Quality Overview
- Over the last twelve months (prior to October 31, 2016), PVH-US paid a high quality dividend, which represents a yield of 0.16% 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 2 were high quality and 3 were low quality.
- The ending cash balance, with a dividend coverage of 54.30x, 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 October 31, 2016), PVH-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 89.17x), investing cash flow (coverage of -37.33x), issuance cash flow (coverage of -24.73x) and twelve-month prior cash (coverage of 30.32x), for a total dividend coverage of 55.30x.
PVH-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -2.98x) and net share buybacks (coverage of -21.86x). Thus, the total coverage including share buybacks is 77.16x, 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 (%)||0.21||0.13||0.12||0.14||0.21||0.16|
|Dividend Payout (%)||3.44||2.56||8.62||2.85||2.18||2.1|
A complete list of metrics and analysis is available on the company page.
PVH Corp. engages in the design and market of branded dress shirts, neckwear, sportswear, Jeanswear, intimate apparel, swim products, handbags, footwear and other related products. It operates through the following segments: Calvin Klein, Tommy Hilfiger, and Heritage Brands. The Calvin Klein segment consists of the Calvin Klein North America and Calvin Klein International, which sells under the brand names Calvin Klein Collection, Calvin Klein Platinum, Calvin Klein, Calvin Klein Jeans, and Calvin Klein Underwear. It is also licensed for a range of products, including fragrance, women’s apparel, footwear, eyewear, watches, and jewelry in various regions. The Tommy Hilfiger segment offers tailored clothing, sportswear, denim, accessories, underwear, and footwear; and consists of Tommy Hilfiger, Hilfiger Denim, Hilfiger Collection, and Tommy Hilfiger Tailored. These brands are also licensed for a range of products, including fragrance, eyewear, watches, and home furnishings in various regions. The Heritage Brands segment designs, sources, and markets prominent brand label dress shirts, neckwear, sportswear, swim products, intimate apparel, underwear and related apparel and accessories, as well as the licensing of Van Heusen, IZOD, ARROW, Warner’s, and Olga brands for an assortment of products. The company was founded by Moses Phillips and Endel in 1881 and is headquartered in New York, NY.
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