Guess's Dividend Looks Sustainable
By Richard Bloch:Although Guess (GES) was a disappointment for investors in 2011, dropping by 40% toward year end, the company actually pays a pretty decent dividend, with a yield of around 2.5% now.Guess only started paying a dividend in 2007, but the payout has been raised each year since then. The current 20 cents per quarter is double the 10 cents paid just two years ago.Unfortunately, earnings per share haven't been growing. This chart, provided courtesy of Ycharts, shows trailing earnings hovering around the $3 level:So can the company maintain its dividend? I think so, at least so far. This chart shows the dividend and the payout ratio going back to 2007:Although the payout ratio is rising, it's still relatively low, with the dividend representing only 25% of earnings. And here's a chart showing the stockComplete Story »
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