Kontoor Brands Rewards Shareholders with 15% Dividend Hike
Lifestyle apparel company Kontoor Brands, Inc. (KTB) recently announced a quarterly dividend of $0.46 per share, up 15% from the previous dividend of $0.40 per share.
Following the news, shares of the company appreciated marginally to close at $51.87 on Friday.
The dividend will be paid on December 20, 2021, to shareholders of record as of December 10, 2021.
The company’s annual dividend of $1.84 per share now reflects a dividend yield of 3.6% based on Friday’s closing price.
The CEO of Kontoor Brands, Scott Baxter, said, “Consistent with our long-term TSR targeted at our recent Investor Day, we are announcing a meaningful increase to our quarterly dividend payment, reflecting management and the Board of Directors’ confidence in our improving fundamentals, operating model and strong cash generation. This powerful cash flow optionality allows us to continue to invest in key strategic growth initiatives and enablers, while also delivering superior cash returns to our shareholders.” (See Kontoor Brands stock chart on TipRanks)
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Three months ago, Barclays analyst Adrienne Yih reiterated a Buy rating on the stock. The analyst’s price target of $86 implies upside potential of 65.8% from current levels.
Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average Kontoor Brands price target of $84 implies upside potential of 61.9% from current levels.
Kontoor Brands scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 62.3% over the past year.
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