Caleres, a renowned footwear company housing some of the most sought-after brands, has announced that its board of directors declared a regular quarterly dividend of $0.07 per share, maintaining the previous dividend rate. This announcement, made on August 24, 2023, notes that to qualify for the dividend, shares must be purchased before the ex-div date of September 7, 2023. The payment will be received by shareholders of record as of September 8, 2023, on September 29, 2023. With the current share price standing at $29.82 per share, the stock’s dividend yield is calculated to be 0.94%.

Diving deeper into the company’s financial history, the average dividend yield over the past five years, sampled weekly, has been 1.62%, with the lowest and highest yields recorded at 0.76% and 6.65% respectively. The current yield is 0.66 standard deviations below the historical average, indicating a deviation from the norm. Furthermore, Caleres has a dividend payout ratio of 0.07, which suggests that 7% of the company’s income is paid out in dividends. This ratio paints a picture of the company’s dividend distribution policies and provides insights into its growth prospects, with good growth prospects typically translating to a payout ratio of zero to 0.5.

Caleres Announces Quarterly Dividend Amid Bullish Outlook

The board of directors at Caleres, a diverse portfolio of coveted footwear brands, declared a quarterly dividend of $0.07 per share ($0.28 annualized) on August 24, 2023. This announcement mirrors the company’s previous dividend payout. Shareholders who purchase shares before the ex-div date of September 7, 2023, will qualify for the dividend. The payment will be made on September 29, 2023, to shareholders of record as of September 8th.

Dividend Yield and Payout Ratio

With the current share price of $29.82 per share, Caleres’ dividend yield stands at 0.94%. Over the past five years, the average dividend yield has been 1.62%, with a range from 0.76% to 6.65%. The present yield is 0.66 standard deviations below this historical average. Meanwhile, the company’s dividend payout ratio, a measure of what portion of a company’s income is paid out in dividends, is 0.07. A payout ratio of 1.0 signifies that 100% of a company’s income is paid out as dividends. A ratio above 1.0 indicates that the company is dipping into its savings to maintain the dividend.

No Increase in Dividend for Three Years

Despite this announcement, Caleres has not increased its dividend in the last three years. Additionally, the number of funds or institutions reporting positions in Caleres decreased by 1.81% last quarter, with the average portfolio weight dedicated to CAL decreasing by 7.69%. On the other hand, total shares owned by institutions increased by 0.77% to 36,542K shares in the last three months. The bullish outlook for Caleres is reflected in the put/call ratio of CAL, which stands at 0.55.

Projected Revenue Increase and Shareholder Activities

The average one-year price target for Caleres is $31.36, suggesting a potential 5.18% increase from its latest reported closing price of $29.82. The projected annual revenue for Caleres is set to rise by 6.42% to 3,036MM, with a projected annual non-GAAP EPS of 4.62. Major shareholders, including T. Rowe Price Investment Management, Principal Financial Group, and iShares Core S&P Small-Cap ETF, have varied their shareholdings over the last quarter, with some increasing their positions while others have decreased their shareholdings.

Conclusion

Despite not increasing its dividend payout for three years, Caleres remains a significant player in the footwear industry with a bullish outlook and projected revenue increase. It’s clear that the company’s diverse portfolio and ability to meet the evolving needs of global audiences have secured its place in the market. While the decrease in institutional ownership last quarter may cause some concern, the overall bullish sentiment and projected upside suggest positive trends for the company moving forward.