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