Summary; The Gap Incorporated announced a regular quarterly dividend of $0.23 per share, the same as the previous year. In 2015, The Gap announced a 5 percent increase from the prior rate of $0.22 per share. The Gap is an American retailer with several outlets including The Gap, Banana Republic, Old Navy, and Athleta. The Board of Directors also approved a new $1 billion share repurchase authorization for the company’s common stock, superseding the existing authorization dated February 26, 2015. The Gap returned about $1.4 billion through share repurchases and dividends in fiscal year 2015.
The company also announced that its Board of Directors authorized the first quarter fiscal year 2016 dividend of $0.23 per share, payable on or after April 27, 2016 to shareholders of record at the close of business on April 6, 2016.
|Price 2/25/16||% Yield||5 Year Div. Growth Rate||SPS 2015||P/S Ratio||10 yr P/S Low||10 yr P/S High||5 yr max Yield %||5 yr lowest Yield %|
- The Gap’s dividend yield is above that of the S&P 500 Index.
- The Gap maintains a 5 year dividend growth rate of 10.5%.
- The Gap is trading at a modest forward P/E ratio, below the market.
- The Gap maintains a credit rating of BBB-. This is at the lowest category of investment grade.
- The stock price has fallen from a high of $42.33 to $27.60 today. The stock is trading at a high historical yield, very low P/S ratio, and has an investment grade rating. Gap qualifies as one of our Top 100 stocks.
Explanation: Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks. Max P/S price target is based upon company reaching its highest historical P/S ratio. Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.
Further information on evaluating dividend growth candidates can be found