June 04, 2025 a 11:31 am
RL: Dividend Analysis - Ralph Lauren Corporation
Ralph Lauren Corporation is a reputable player in the apparel industry, known for its commitment to consistent dividend payouts. Its disciplined approach to dividend growth, combined with attractive fiscal metrics, positions it as a noteworthy option for investors seeking stable income amidst market fluctuations.
📊 Overview
Ralph Lauren, operating within the apparel sector, demonstrates a balanced approach to dividends, offering a yield of 1.20%. With a commendable history of 23 years in consistent dividend payments, it's crucial to mention the absence of any recent dividend cuts or suspensions.
| Category | Details |
|---|---|
| Sector | Apparel |
| Dividend yield | 1.20% |
| Current dividend per share | 3.21 USD |
| Dividend history | 23 years |
| Last cut or suspension | None |
📜 Dividend History
A stable dividend history reflects the financial health and management's confidence in future cash flows. Ralph Lauren has consistently rewarded its shareholders, underscoring reliability and trustworthiness in its payouts.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.7375 |
| 2024 | 3.225 |
| 2023 | 3.00 |
| 2022 | 2.9375 |
| 2021 | 2.0625 |
📈 Dividend Growth
The analysis of dividend growth rates is crucial for understanding a company's commitment to enhancing shareholder value. Ralph Lauren has realized an appreciable dividend growth of 0.16% over the past 3 years and 0.04% over the last 5 years, indicating prudent financial management.
| Time | Growth |
|---|---|
| 3 years | 0.16% |
| 5 years | 0.04% |
The average dividend growth is 0.04% over 5 years. This shows moderate but steady dividend growth.
🔍 Payout Ratio
The payout ratios reflect Ralph Lauren's disciplined dividend policy. Maintaining a sustainable payout ratio ensures adequate room for reinvestment and financial cushioning.
| Key figure | Ratio |
|---|---|
| EPS-based | 26.90% |
| Free cash flow-based | 19.85% |
Ralph Lauren's EPS-based payout ratio of 26.90% indicates a conservative approach, providing the flexibility to adjust dividends if needed. The FCF-based ratio of 19.85% supports a secure dividend payout framework.
💵 Cashflow & Capital Efficiency
Robust cash flow metrics indicate the company's ability to sustain and potentially increase dividends. The capital efficiency ratios are a testament to effective resource utilization.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 7.55% | 7.39% | 2.45% |
| Earnings Yield | 5.50% | 5.28% | 6.62% |
| CAPEX to Operating Cash Flow | 12.25% | 15.41% | 52.92% |
| Stock-based Comp. to Revenue | 1.52% | 1.50% | 1.17% |
| FCF / Operating Cash Flow Ratio | 82.50% | 84.59% | 47.08% |
| Return on Invested Capital | 20.51% | 10.91% | 9.53% |
The cash flow metrics support the company's dividend payments while ensuring capital efficiency, indicating sound financial management and strategic reinvestment decisions.
🧾 Balance Sheet & Leverage Analysis
A strong balance sheet underpins the potential for sustained dividend payments through sound leverage and liquidity ratios.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.02 | 1.09 | 1.18 |
| Debt-to-Assets | 37.57% | 40.52% | 42.15% |
| Net Debt to EBITDA | 0.59 | 0.95 | 1.66 |
| Current Ratio | 1.78 | 2.29 | 2.23 |
| Quick Ratio | 1.33 | 1.68 | 1.51 |
| Financial Leverage | 2.72 | 2.69 | 2.79 |
The company's leverage ratios indicate a well-structured debt profile, with a net debt to EBITDA ratio suggesting manageable levels of debt relative to earnings.
📈 Fundamental Strength & Profitability
Strong profitability and efficiency metrics bolster the company's ability to maintain and enhance dividend payments.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 28.70% | 26.38% | 21.51% |
| Return on Assets | 10.54% | 9.79% | 7.70% |
| Net Profit Margin | 10.49% | 9.75% | 8.11% |
| EBIT Margin | 14.23% | 12.36% | 11.36% |
| EBITDA Margin | 17.33% | 16.00% | 12.44% |
| Gross Profit Margin | 68.55% | 66.83% | 64.65% |
| Research & Development to Revenue | 0% | 0% | 0% |
Strong profitability margins and a robust return on equity underscore Ralph Lauren's competitive edge and reinforce its capacity for regular dividend payments.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3/5 | |
| Dividend Stability | 4/5 | |
| Dividend Growth | 3/5 | |
| Payout ratio | 4/5 | |
| Financial stability | 5/5 | |
| Dividend continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 5/5 |
Total Score: 33/40
🏅 Rating
Ralph Lauren Corporation showcases a strong commitment to dividend stability and growth, highlighted by its balanced dividend payout strategy and robust financial health. For investors pursuing stable income, RL provides a compelling case with its effective management and fiscal discipline, meriting a positive recommendation for dividend-focused portfolios.