Johnson Outdoors Ramps Up Dividend By 23.5%

Johnson Outdoors’ shares rose 2.3% on Friday after the company’s board approved a 23.5% increase in its quarterly cash dividend.

Johnson Outdoors’ (JOUT) Class A shareholders will now receive a cash dividend of $0.21 per share from $0.17 per share. The outdoor recreation products seller said that the new dividend will be paid on Oct. 23 to shareholders of record on Oct. 9. Based on Thursday’s closing price of $80.36, the new annual dividend yield comes to 1.05%.

Meanwhile, on July 31, Johnson Outdoors reported lower-than-expected June-ending third quarter results due to a shift in sales pattern amid the pandemic. The company reported 3Q EPS of $1.27, worse than analysts’ estimates of $1.82 per share. Its revenue came in at $138.4 million, which also fell short of the consensus estimate of $157.6 million. (See JOUT stock analysis on TipRanks).

On Sept. 8, Sidoti analyst Anthony Lebiedzinski upgraded Johnson Outdoors to Buy from Hold and also lifted the price target to $103 (25.5% upside potential) from $99. The analyst believes that the company is benefiting from higher demand for outdoor recreation products- and as a result he also increased his earning estimates.

Currently, the Street has a cautiously optimistic outlook on the stock with a Moderate Buy analyst consensus. The average price target of $103 implies upside potential of 25.5% to current levels. Shares gained by about 7% year-to-date.

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