Apparel and accessories retailer The Buckle, Inc. BKE hiked its quarterly dividend and also authorized a special cash dividend. We note that the announcement of dividend hike did not provide much impetus to this Zacks Rank #4 (Sell) stock that rose marginally by 0.1% to close at $31.36 yesterday.
Buckle raised its quarterly dividend by 8.7% to 25 cents per share and announced $1.00 special cash dividend. Both dividends are payable on Jan 27, 2016 to shareholders of record as on Jan 15, 2016.
The recent dividend increase brings the company’s annualized dividend to $1.00 per share. The annualized dividend yield, based on the increased dividend and last closing stock price is 3.2%.
This retailer of casual apparel for young men and women had last hiked its quarterly dividend to 23 cents in Dec 2014, reflecting an upsurge of 4.5%.
Dividend hike is frequent among companies with a stable cash position and healthy cash flow. The companies that recently raised their dividends include Nike Inc. NKE, by 14% to 32 cents per share, Aaron’s Inc. AAN, by 8.7% to 25 cents per share, and Fortune Brands Home & Security Inc. FBHS, by 14% to 16 cents per share.
We believe that dividend payouts not only enhance shareholder returns but raise the stock’s market value as well. Moreover, such measures enable companies to bolster investors’ confidence, persuading them to either buy or hold the scrip instead of selling it. Looking ahead, Buckle remains confident of its growth potential, raising hopes for further enhancement of shareholder value through dividend payments.
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