Kontoor Brands, Inc. (NYSE:KTB) Plans Dividend Increase - $0.53 Per Share

Key Points

• Kontoor Brands, Inc. announced a quarterly dividend increase of 1.9%, raising it from $0.52 to $0.53 per share, payable on December 18th to shareholders of record as of December 8th.
• The company maintains a payout ratio of 37.3%, indicating robust earnings coverage for its dividends, with projections suggesting it can sustain its $2.08 annual dividend based on expected earnings of $5.28 per share next year.
• KTB shares experienced a decline of $1.09 to $84.85 during trading, with a market capitalization of $4.71 billion and a price-to-earnings ratio of 18.94.

Kontoor Brands, Inc. (NYSE:KTB - Get Free Report) declared a quarterly dividend on Friday, October 24th. Shareholders of record on Monday, December 8th will be paid a dividend of 0.53 per share on Thursday, December 18th. This represents a c) annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Monday, December 8th. This is a 1.9% increase from Kontoor Brands's previous quarterly dividend of $0.52.

Kontoor Brands has a payout ratio of 37.3% indicating that its dividend is sufficiently covered by earnings. Analysts expect Kontoor Brands to earn $5.28 per share next year, which means the company should continue to be able to cover its $2.08 annual dividend with an expected future payout ratio of 39.4%.

Kontoor Brands Stock Performance

Shares of KTB stock traded down $1.09 during mid-day trading on Friday, hitting $84.85. 377,389 shares of the stock were exchanged, compared to its average volume of 706,251. The stock's fifty day simple moving average is $79.63 and its two-hundred day simple moving average is $69.91. The stock has a market capitalization of $4.71 billion, a price-to-earnings ratio of 18.94, a P/E/G ratio of 1.93 and a beta of 1.15. Kontoor Brands has a 12-month low of $50.00 and a 12-month high of $96.80. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.95 and a current ratio of 2.18.

Kontoor Brands (NYSE:KTB - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.35. The company had revenue of $658.26 million for the quarter, compared to analyst estimates of $632.97 million. Kontoor Brands had a return on equity of 68.76% and a net margin of 9.48%.The business's quarterly revenue was up 8.5% compared to the same quarter last year. During the same quarter last year, the company posted $0.98 earnings per share. Kontoor Brands has set its FY 2025 guidance at 5.450-5.450 EPS. Q3 2025 guidance at 1.350-1.350 EPS. On average, analysts forecast that Kontoor Brands will post 4.82 EPS for the current year.

Institutional Investors Weigh In On Kontoor Brands

Hedge funds have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp lifted its position in Kontoor Brands by 1.8% in the first quarter. Bank of New York Mellon Corp now owns 597,638 shares of the company's stock valued at $38,327,000 after purchasing an additional 10,748 shares during the period. Zurich Insurance Group Ltd FI acquired a new stake in Kontoor Brands in the first quarter valued at about $898,000. American Century Companies Inc. lifted its position in Kontoor Brands by 9.4% in the first quarter. American Century Companies Inc. now owns 44,620 shares of the company's stock valued at $2,862,000 after purchasing an additional 3,846 shares during the period. EP Wealth Advisors LLC acquired a new stake in Kontoor Brands in the first quarter valued at about $306,000. Finally, Fuller & Thaler Asset Management Inc. lifted its position in Kontoor Brands by 5.2% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 1,091,445 shares of the company's stock valued at $69,994,000 after purchasing an additional 53,992 shares during the period. Institutional investors and hedge funds own 93.06% of the company's stock.

About Kontoor Brands

Kontoor Brands, Inc, a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name.

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