AEO stock dividend – American Eagle Outfitters Increases Quarterly Dividend by 25% to $0.125/Share
December 18, 2023
🌥️Trending News
American Eagle Outfitters ($NYSE:AEO) (AEO) has increased their quarterly dividend by 25%, setting it to $0.125 per share. AEO is a leading retailer of high-quality, on-trend clothing, accessories, and personal care products for men and women. AEO has an established track record of delivering consistent growth and profitability through its various brands, including American Eagle, Aerie, and Tailgate. With this dividend increase, AEO is signaling its commitment to creating shareholder value through its dividend policy.
The new dividend rate of $0.125 per share represents an attractive yield for investors looking for income in a challenging market. Furthermore, AEO’s strong balance sheet and financial health should provide assurance to shareholders that the company is well-positioned to continue to deliver solid returns in the future. This dividend increase is a reflection of AEO’s confidence in its ability to continue delivering consistent growth and returns to shareholders over the long term.
Dividends – AEO stock dividend
This is the third consecutive year that AEO has issued an annual dividend per share. In 2022, the dividend was 0.3 USD; in 2023, it was 0.36 USD; and finally in 2024, it was 0.68 USD. Furthermore, AEO’s dividend yields from 2022 to 2024 are 1.52%, 2.16%, and 2.29% respectively.
The average dividend yield is 1.99%. This increase in dividend payments reflects AEO’s focus on rewarding their shareholders and increasing shareholder value.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AEO. More…
| Total Revenues | Net Income | Net Margin |
| 5.08k | 218.31 | 4.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AEO. More…
| Operations | Investing | Financing |
| 777.34 | -205.57 | -412.73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AEO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.52k | 1.78k | 8.8 |
Key Ratios Snapshot
Some of the financial key ratios for AEO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.3% | -5.0% | 5.0% |
| FCF Margin | ROE | ROA |
| 11.4% | 9.3% | 4.5% |
Analysis – AEO Stock Fair Value Calculation
At GoodWhale, we recently analyzed the financials of AMERICAN EAGLE OUTFITTERS and found that the fair value of its stock was around $18.8. This is calculated based on our proprietary Valuation Line, which takes into account multiple factors such as the company’s past financial performance, current market conditions, and future prospects. Currently, AMERICAN EAGLE OUTFITTERS stock is traded at $20.8, a fair price that is overvalued by 10.8%. As such, investors should be aware that there is potential downside from here. However, given the company’s history of success and its potential for future growth, it may still be a good investment opportunity. More…
Peers
American Eagle Outfitters Inc competes with Roots Corp, Aritzia Inc, and Zumiez Inc. for market share in the clothing retail industry. All four companies offer a variety of clothing and accessories for men, women, and children, but American Eagle Outfitters Inc has a few key differentiators. First, American Eagle Outfitters Inc operates more than 1,000 stores in the United States, compared to Roots Corp’s 85 stores, Aritzia Inc’s 97 stores, and Zumiez Inc’s 741 stores. Second, American Eagle Outfitters Inc’s product mix includes a larger proportion of private label merchandise than its competitors, which allows the company to control cost and maintain higher profit margins.
– Roots Corp ($TSX:ROOT)
Roots Corp is a Canadian retailer that specializes in selling outdoor lifestyle clothing and accessories. The company was founded in 1973 and today operates more than 120 stores across Canada. In addition to its retail stores, Roots also operates an online store and sells its products through wholesale channels.
Roots Corp has a market cap of 115.97M as of 2022. The company’s ROE for the same year is 12.62%.
– Aritzia Inc ($TSX:ATZ)
Aritzia Inc. is a Canadian women’s fashion retailer founded in 1984. The company operates over 80 stores across Canada and the United States under eight different banners. Aritzia offers a wide range of women’s clothing, accessories, and beauty products. The company has a market cap of 5.72B as of 2022 and a return on equity of 31.82%.
– Zumiez Inc ($NASDAQ:ZUMZ)
Zumiez Inc is a publicly traded company with a market capitalization of 407.32M as of 2022. The company has a strong return on equity of 16.06% and is involved in the retail industry. Zumiez Inc operates stores that sell apparel, footwear, and accessories for young men and women. The company’s focus is on action sports, such as skateboarding, snowboarding, and motocross.
Summary
This move signals confidence in AEO’s financial strength and management’s outlook for the company’s future profitability. Analysts suggest that AEO is setting an attractive yield for investors, making it a sound investment opportunity. With this dividend increase, AEO is likely to become an attractive option for investors looking for dividend income.
The company’s stock price has been showing strong performance and is expected to remain relatively stable due to the dividend increase and its current market position. Overall, the market is showing confidence in AEO’s ability to generate solid returns for its shareholders.
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