The shares of this apparel company were just upgraded by Stifel to ‘Buy’. The shares have a current dividend yield of 3.02%, paid quarterly.
Hanesbrands Inc. (HBI)
From Forbes Dividend Investor
Winston-Salem, N.C.-based Hanesbrands designs, manufactures and sells innerwear and activewear apparel worldwide. Products include underwear, socks, T-shirts, sweatshirts, and bras. Brands include Hanes, Champion, Bonds, Maidenform, DIM, Bali, Playtex, Bras N Things, L’eggs, Just My Size, and Wonderbra.
The company on Tuesday reported quarterly revenue and profit that topped analysts’ estimates, but the stock fell more than 14% at one point because management offered lower sales and earnings guidance for the rest of the year. The company expects 2021 adjusted earnings of $1.51 to $1.59 per share, and sales of $6.2 billion to $6.3 billion, compared to Wall Street’s forecast for EPS of $1.61 and sales of $6.71 billion. Management outlined a three-year growth strategy for its Champion brand that it says should add increase compound annual sales growth by 6% per year through 2024.
Revenue in the most recent quarter grew 25.4% from one year ago, and over the past 12 months, sales have totaled $6.86 billion. Hanesbrands generated $1.43 in free cash flow per share over the past 12 months, which is comfortably higher than $0.60 in annual dividends.
Stock purchases by insiders buttress the bullish case on Hanesbrands. A member of the board of directors and a division president bought more than $350,000 worth of company stock on Thursday.
John Dobosz, Forbes Dividend Investor, newsletters.forbes.com, 212-367-3388, May 14, 2021