How can an investor be sure that a company is of high quality? Investing is as much an art as it is a science, but outperforming the market over at least five years is typically a good sign.

Delivering 28.7% annual total returns over the last five years, the home retailer Williams-Sonoma (NYSE: WSM) dramatically outpaced the S&P 500 index's 12.8% annual total returns during the same period. A $10,000 investment in the retailer would now be worth over $35,000 with dividends reinvested. For context, this is nearly double the $18,000 the S&P 500 index would have parlayed the same investment into in that time.

But is Williams-Sonoma's stock still a buy for dividend investors? Let's dig into the company's fundamentals and valuation to find out.

Continue reading

Source Fool.com