Dividend Increase: WSM

Williams-Sonoma Inc. (WSM) just declared $0.43 quarterly dividend. This is an increase of 10.0% from $0.39.

I own 50 shares, so this will increase my annual dividend income by $8.00 to a total of $5,146.38

I updated both my Passive Income page as well as my Portfolio page to reflect the changes.

My Thoughts:

Yet another double-digit dividend increase that has been announced. The company has a dividend payout ratio of 43% and CFRA has a 3-year future earning growth of 9%. This means that the company has a lot of room to continue to grow its dividend at high single-digit or low double-digit rates as well has growing earnings to back it up.

The last two past dividend increase was 5.4% last year and 6% in 2016. So this year increase was a pleasant surprise.

I find that the company is currently Fair valued. I give this stock a HOLD recommendation.

I do not plan to add any more shares of WSM at the moment; however, If I do see a significant price drop, I may consider adding more shares. I do have other companies that I am currently looking at and that I find more attractive at this time, so please stay tuned and make sure to connect with me for more information.

Source: fastgraphs.com

What do you think of the company and its recent dividend increase?

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