Kontoor Brands, Inc. (NYSE:KTB) to Issue Dividend Increase - $0.54 Per Share

Key Points

• Kontoor Brands increased its quarterly dividend by 1.9% to $0.54 per share, payable December 18 to shareholders of record December 8. The annualized dividend is $2.16 per share, yielding approximately 2.8%.
• The dividend appears well covered, with a current payout ratio of 38.1%; analysts expect next year’s earnings of $6.34 per share, implying a projected payout ratio of 33.4%.
• Kontoor’s latest quarterly earnings slightly exceeded expectations at $1.06 per share, although revenue fell 11.2% year over year to $584.29 million. Shares were trading at $76.25, down 2.0%.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report) declared a quarterly dividend on Wednesday, October 21st. Investors of record on Tuesday, December 8th will be given a dividend of $0.54 per share on Friday, December 18th. This represents a $2.16 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Tuesday, December 8th. This is a 1.9% increase from Kontoor Brands's previous quarterly dividend of $0.53.

Kontoor Brands has raised its dividend by an average of 0.2% annually over the last three years and has raised its dividend every year for the last 1 years. Kontoor Brands has a payout ratio of 38.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Kontoor Brands to earn $6.34 per share next year, which means the company should continue to be able to cover its $2.12 annual dividend with an expected future payout ratio of 33.4%.

Kontoor Brands Trading Down 2.0%

NYSE KTB opened at $76.25 on Friday. Kontoor Brands has a 52 week low of $56.19 and a 52 week high of $88.96. The company has a 50 day moving average price of $71.28 and a 200 day moving average price of $74.93. The company has a quick ratio of 0.99, a current ratio of 1.83 and a debt-to-equity ratio of 1.82. The firm has a market cap of $4.17 billion, a PE ratio of 15.95 and a beta of 0.87.

Kontoor Brands (NYSE:KTB - Get Free Report) last announced its earnings results on Wednesday, August 12th. The company reported $1.06 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.01. The company had revenue of $584.29 million during the quarter, compared to the consensus estimate of $586.95 million. Kontoor Brands had a net margin of 8.21% and a return on equity of 59.71%. Kontoor Brands's revenue was down 11.2% compared to the same quarter last year. During the same period last year, the firm earned $1.33 earnings per share. Kontoor Brands has set its FY 2026 guidance at 5.250-5.350 EPS. As a group, sell-side analysts forecast that Kontoor Brands will post 5.27 EPS for the current fiscal year.

Kontoor Brands Company Profile

Kontoor Brands, Inc NYSE: KTB is a global lifestyle apparel company focused on denim and casualwear. Its portfolio includes the Wrangler and Lee brands, as well as Rock & Republic, offering jeans, shirts, jackets, tops, bottoms, accessories and related products for men, women and children.

The company sells its products through wholesale customers, including department stores, specialty retailers and mass merchants, as well as through company-operated stores and e-commerce channels. Kontoor serves consumers in North America and international markets, with products distributed across multiple regions worldwide.

Kontoor Brands became an independent publicly traded company in 2019 following its separation from VF Corporation.

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