Investors interested in Carter's (NYSE:CRI) upcoming dividend payout must acquire shares before Nov 27 to be eligible for the distribution scheduled for Dec 8, which is set at $0.75 per share. The company's current stock price of $67.55 reflects an annual yield of approximately 4.4%, with an aggregate annual payment reaching $3.00 per share.
The dividend appears sustainable, as it is well-covered by profits and cash flow, with a moderate profit allocation of 55% and minimal free cash flow usage at 25%. Despite an average annual earnings decrease of -2.7%, Carter's has maintained a robust average annual dividend growth rate of +17% over the past decade, suggesting resilience in its dividend policy amid downward earnings trends.
InvestingPro Insights
Investors scrutinizing Carter's financials for the upcoming dividend payout should note the company's strategic financial moves. According to InvestingPro Tips, management at Carter's has been actively repurchasing shares, which can signal confidence in the company's value and often results in earnings per share accretion. Additionally, Carter's boasts a high return on invested capital, suggesting efficient use of capital in generating profits.
From the InvestingPro Data, the company's market capitalization stands at $2.49 billion with a price-to-earnings (P/E) ratio of 12.28, reflecting investor expectations of future earnings. The adjusted P/E ratio for the last twelve months as of Q3 2023 is slightly lower at 11.76, possibly indicating a more favorable valuation. The dividend yield as of the latest data is 4.44%, aligning closely with the yield mentioned in the article.
For those considering a deeper dive, InvestingPro offers additional tips on Carter's, including insights on valuation, profitability, and analysts' sales expectations. Currently, there are 5 more tips listed on InvestingPro that could provide a comprehensive understanding of Carter's financial health and future prospects.
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