Is This Fast-Growing Retailer a Buy Following Its Dividend Hike?

Quality dividend growth stocks are tied to companies that deliver the goods and services that the world demands. And it's because their goods and services are in such demand that can generate the free cash flow that fuels growing dividends and share prices to shareholders. It's for these reasons that the home retailer Williams-Sonoma (NYSE: WSM) is a core holding within my dividend growth portfolio.

On March 16, management announced that the retailer would be boosting its quarterly dividend by 9.9% to $0.78 per share. And if that wasn't impressive enough, management also announced a new $1.5 billion share-repurchase program. Such an ambitious goal of returning capital to shareholders raises the question: Should you buy the stock?

Let's dive into Williams-Sonoma's fundamentals and valuation to try and get an answer.

Source Fool.com