January 31, 2026 a 07:46 am
ROST: Dividend Analysis - Ross Stores, Inc.
Ross Stores, Inc. presents a solid foundation for dividend investors with its long-standing dividend history and robust growth in financial performance. The company's commitment to maintaining consistent dividends despite economic headwinds, as seen in the 2020 suspension, highlights its strategic foresight. Its moderate dividend yield is complemented by strong overall business fundamentals that bode well for future potential returns.
📊 Overview
| Detail | Value |
|---|---|
| Sector | Consumer Discretionary |
| Dividend Yield | 0.92% |
| Current Dividend per Share | 1.49 USD |
| Dividend History | 32 Years |
| Last Cut or Suspension | 2020 |
📈 Dividend History
The continuation of dividends over 32 years indicates Ross Stores' commitment to rewarding shareholders. The resilience shown through past economic cycles portrays trust and reliability, crucial in a volatile market.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.62 |
| 2024 | 1.47 |
| 2023 | 1.34 |
| 2022 | 1.24 |
| 2021 | 1.14 |
📊 Dividend Growth
Consistent dividend growth reflects positively on Ross Stores' earnings capacity and management’s confidence in its future prospects. Historical growth is pivotal for investors favoring income growth.
| 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
The payout ratio provides insight into how sustainable the current dividend payment is in relation to company earnings and cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 23.03% |
| Free Cash Flow-based | 24.64% |
The EPS-based payout ratio of 23.03% and FCF-based ratio of 24.64% suggest a well-balanced dividend policy, maintaining room for growth and reinvestment.
📊 Cashflow & Capital Efficiency
Understanding the cash flow dynamics and capital efficiency of Ross Stores is crucial for assessing the long-term sustainability of its financial strategies.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 2.55% | 3.73% | 3.31% |
| Earnings Yield | 3.72% | 3.99% | 4.23% |
| CAPEX to Operating Cash Flow | 38.72% | 30.34% | 30.55% |
| Stock-based Compensation to Revenue | 0.65% | 0.71% | 0.74% |
| Free Cash Flow / Operating Cash Flow Ratio | 61.28% | 69.66% | 69.45% |
| Return on Invested Capital | 14.51% | 15.84% | 16.83% |
Cash flow efficiency remains strong, illustrating Ross Stores' ability to generate and utilize cash effectively toward growth activities and returns management.
🔍 Balance Sheet & Leverage Analysis
A robust balance sheet underpins a company's ability to withstand volatility and fulfill obligations, essential for dividend sustainability.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 1.33 | 1.18 | 1.03 |
| Debt-to-Assets | 42.53% | 40.19% | 38.12% |
| Debt-to-Capital | 57.09% | 54.13% | 50.77% |
| Net Debt to EBITDA | 0.47 | 0.30 | 0.29 |
| Current Ratio | 1.90 | 1.77 | 1.52 |
| Quick Ratio | 1.34 | 1.24 | 1.09 |
| Financial Leverage | 3.13 | 2.94 | 2.71 |
Ross Stores exhibits strong financial stability, highlighted by declining leverage ratios, marking improvements in debt management and liquidity.
🧮 Fundamental Strength & Profitability
Strong fundamentals push a company ahead of its peers, demonstrating robust operational capabilities and efficiency in capital allocation.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 35.26% | 38.48% | 37.95% |
| Return on Assets | 11.27% | 13.11% | 14.03% |
| Margins - Net | 8.09% | 9.20% | 9.89% |
| Margins - EBIT | 11.06% | 12.49% | 13.35% |
| Margins - EBITDA | 13.17% | 14.55% | 15.46% |
| Margins - Gross | 25.40% | 27.36% | 27.77% |
| R&D to Revenue | 0% | 0% | 0% |
Strong return on equity and improving net margins signal efficient use of resources and pricing power in Ross Stores' core market.
🏷️ Price Development
📊 Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 5 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
✅ Rating
Ross Stores, Inc. is a prudent choice for dividend investors seeking consistent returns with reasonable growth potential. The company's financial and operational metrics underscore the reliability of its dividend policy.