This Retail Stock Has a 9% Dividend Yield: Is It a Buy?
The Buckle (NYSE: BKE) is a specialty apparel retailer with an impressive dividend and an improving sales story. After a few years of declining revenue, the company has shown revenue stabilization. However, shares have also surged more than 50% over the last six months, including a 20% gain after the company reported third-quarter earnings that exceeded consensus estimates in late November.
While the company's headline dividend yield is 4.6%, it's been offering an additional special cash dividend each year since 2016. In December 2019, Buckle announced a $1.25 per share special cash dividend. With the special dividend, the stock's yield is over 9%. Previous special dividends were $1.00, $1.75, and $0.75 per share in December 2018, 2017, and 2016, respectively. While the impressive dividend and revenue improvements may interest investors, could these positives be priced into the shares given the stock's powerful performance in 2019?
Image source: Buckle.
Source Fool.com
