June 23, 2026 a 03:30 pm
RL: Dividend Analysis - Ralph Lauren Corporation
The analysis of Ralph Lauren Corporation reveals its commitment to delivering shareholder value through dividends. Despite its relatively modest dividend yield of 0.92%, the company's consistency in maintaining dividend distribution for 24 years is commendable. Though recent years have seen modest growth, its financial health and dividend history indicate a reliable income investment.
📊 Overview
The overview of Ralph Lauren Corporation's dividends provides insight into the company's sector positioning and dividend strength.
| Sector | Dividend Yield (%) | Current Dividend per Share (USD) | Dividend History (years) | Last Cut/Suspension |
|---|---|---|---|---|
| Consumer Discretionary | 0.92% | 3.55 USD | 24 years | None |
🗣️ Dividend History
The dividend history of Ralph Lauren Corporation underlines its resilience in maintaining steady payouts over the years, despite economic headwinds.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.9125 |
| 2025 | 3.5625 |
| 2024 | 3.225 |
| 2023 | 3.00 |
| 2022 | 2.9375 |
📈 Dividend Growth
Analyzing the dividend growth rate is crucial as it reflects the company's ability to increase shareholder returns over time, indicating its financial health and confidence.
| Time | Growth |
|---|---|
| 3 years | 6.64% |
| 5 years | 38.96% |
The average dividend growth is 38.96% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
The payout ratio is a key indicator of dividend sustainability. A low ratio suggests more room for growth or stability in dividends.
| Key Figure | Ratio |
|---|---|
| EPS-based | 23.00% |
| Free cash flow-based | 29.02% |
The EPS payout ratio of 23.00% and FCF payout ratio of 29.02% reflect a conservative and sustainable approach to dividends, indicating room for future growth.
✅ Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency helps understand operational efficiency, capital usage, and sustainability of dividend payouts.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 3.73% | 7.55% | 7.39% |
| Earnings Yield | 4.71% | 5.50% | 5.28% |
| CAPEX to Operating Cash Flow | 35.36% | 17.50% | 15.41% |
| Stock-based Compensation to Revenue | 1.37% | 1.52% | 1.50% |
| Free Cash Flow / Operating Cash Flow Ratio | 64.64% | 82.50% | 84.59% |
| Return on Invested Capital | 19.62% | 13.10% | 11.64% |
The steady free cash flow and high return on invested capital suggest efficient use of capital and strong cash flow management, supporting the continuation of dividends.
📉 Balance Sheet & Leverage Analysis
An examination of the balance sheet and leverage ratios highlights the company's financial stability, liquidity, and ability to manage debt.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 105.22% | 103.08% | 150.57% |
| Debt-to-Assets | 46.41% | 37.86% | 55.88% |
| Debt-to-Capital | 51.27% | 50.76% | 60.09% |
| Net Debt to EBITDA | 0.71 | 0.61 | 1.93 |
| Current Ratio | 2.10 | 1.78 | 2.29 |
| Quick Ratio | 1.55 | 1.33 | 1.68 |
| Financial Leverage | 226.73% | 272.25% | 269.46% |
The company maintains strong liquidity and moderate leverage, ensuring financial stability and reducing risk exposure to economic volatility.
🗣️ Fundamental Strength & Profitability
Assessing the company's fundamentals and profitability ratios provides insight into its operational efficiency and profitability margins.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Return on Equity | 33.13% | 28.70% | 26.38% |
| Return on Assets | 14.61% | 10.54% | 9.79% |
| Net Profit Margin | 11.60% | 10.49% | 9.75% |
| EBIT Margin | 14.51% | 14.05% | 12.36% |
| EBITDA Margin | 17.38% | 17.15% | 15.81% |
| Gross Margin | 69.87% | 68.55% | 66.83% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
The robust profitability ratios exhibit Ralph Lauren's capacity to generate solid returns with its existing resources, ensuring sustained company growth and dividend flows.
📈 Price Development
💡 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
🗳️ Rating
Ralph Lauren Corporation presents itself as a solid income investment with strong financial health and a reliable dividend history. The company's consistent dividends, combined with reasonable payout ratios and healthy growth prospects, make it a viable option for income-seeking investors. Our recommendation is a "Hold", considering the stable financial outlook and moderate dividend growth potential.
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