January 22, 2026 a 07:31 am
ROST: Dividend Analysis - Ross Stores, Inc.
Ross Stores, Inc. presents a commendable dividend profile with a history of 32 years of dividends. The company’s dividend yield is relatively low at 0.92%, but its consistent growth and stable financial ratios highlight its potential for long-term investors seeking growth stability. Furthermore, a low payout ratio indicates the capability of sustaining dividends even amidst economic fluctuations.
📊 Overview
Ross Stores, Inc., operating in the retail sector, is known for its robust financial health and steady dividend increases over many years. Below is a table summarizing the key dividend figures:
| Sector | Dividend Yield | Current Dividend Per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Retail | 0.92% | 1.49 USD | 32 years | 2020 |
🗣️ Dividend History
Analyzing the historical data of dividend payments reveals the company's commitment to rewarding shareholders. This is key for investor trust and organizational credibility. A visual representation and recent dividend payments are listed below:
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.620 |
| 2024 | 1.470 |
| 2023 | 1.340 |
| 2022 | 1.240 |
| 2021 | 1.140 |
📈 Dividend Growth
The growth of dividends over time is a critical element in assessing the future potential of a stock. The table below illustrates the growth rates over different periods, which reflect shareholder value enhancement through consistent increases:
| Time | Growth |
|---|---|
| 3 years | 9.32% |
| 5 years | 41.56% |
The average dividend growth is 41.56% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
A low payout ratio can indicate that a company retains the majority of its earnings for growth, providing a cushion for dividends during downturns. Below are the payout ratios based on key financial metrics:
| Key Figure | Ratio |
|---|---|
| EPS-based | 23.03% |
| Free cash flow-based | 24.64% |
Both the 23.03% EPS payout and the 24.64% free cash flow payout ratios illustrate the company's restrained payout strategy, ensuring room for future dividend hikes.
✅ Cashflow & Capital Efficiency
Effective cash flow management and capital efficiency are imperative for sustainable dividend payments. The following table presents key metrics over recent years:
| Metric/Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.31% | 3.73% | 2.55% |
| Earnings Yield | 4.23% | 3.99% | 3.72% |
| CAPEX to Operating Cash Flow | 30.55% | 30.34% | 38.72% |
| Stock-based Compensation to Revenue | 0.74% | 0.71% | 0.65% |
| Free Cash Flow / Operating Cash Flow Ratio | 69.45% | 69.67% | 61.28% |
The analyzed data ensures Ross Stores' ongoing ability to manufacture cash efficiently and allocate capital sustainably, vital for its dividend policy integrity.
⚠️ Balance Sheet & Leverage Analysis
Understanding balance sheet ratios and leverage is crucial for evaluating financial stability. Ross Stores displays the following metrics:
| Metric/Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.031 | 1.180 | 1.331 |
| Debt-to-Assets | 0.381 | 0.402 | 0.425 |
| Debt-to-Capital | 0.508 | 0.541 | 0.571 |
| Net Debt to EBITDA | 0.291 | 0.295 | 0.469 |
| Current Ratio | 1.617 | 1.767 | 1.899 |
| Quick Ratio | 1.093 | 1.244 | 1.342 |
| Financial Leverage | 2.706 | 2.936 | 3.128 |
The leverage and liquidity ratios signal strong financial health, capable of maintaining operations and meeting financial obligations.
✅ Fundamental Strength & Profitability
Metrics on fundamental strength and profitability reveal the financial robustness of a firm. Here are Ross Stores' key figures:
| Metric/Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 37.95% | 38.48% | 35.26% |
| Return on Assets | 14.03% | 13.11% | 11.27% |
| Net Margin | 9.89% | 9.20% | 8.09% |
| EBIT Margin | 13.35% | 12.49% | 11.06% |
| EBITDA Margin | 15.46% | 14.55% | 13.17% |
| Gross Margin | 27.78% | 27.36% | 25.40% |
| R&D to Revenue | 0% | 0% | 0% |
These fundamentals paint a picture of a highly profitable and efficient enterprise, suggesting continued success in sustaining dividend growth.
⏳ Price Development
🚦 Dividend Scoring System
Our custom scoring system evaluates multiple aspects of the dividend profile below:
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 34/40
✅ Rating
Ross Stores, Inc. showcases a strong dividend profile characterized by a stable payout, excellent financial health, and consistent growth. While the yield may appear modest, the responsible management of its financial resources positions it as an appealing choice for investors prioritizing long-term stability and growth potential. A recommended investment for conservative investors focusing on sustained value growth.