Home furnishings chainWilliams-Sonoma (
) raised its dividend in March and now has one of the highest
yields in its industry.
The annualized dividend yield is above 2% based on its recent
share prices. The company pays a quarterly dividend of 31 cents a
share, after increasing it 41% from 22 cents on March 19.
At the time, Williams-Sonoma also set a $750 million stock
buyback, to be executed over a three-year period.
The dividend was 10 cents a share in January 2007. IBD
calculates a three-to-five-year dividend growth rate of 18%, and
the pace of that dividend growth is among the most steady in
The company's earnings growth also is steady. Its three-year
Earnings Stability Factor is 7 on a scale of 0 (calm) to 99
Earnings-per-share gains have ranged from 8% to 21% the past
eight quarters, following the wild increases and declines during
the recessionary and recovery years of 2008-10.
Williams-Sonoma's three-year EPS growth rate is 22%, seventh
in the industry group.
The retailer operates the Williams-Sonoma, Pottery Barn and
West Elm chains plus several online stores.
The home furnishings industry has vaulted in recent weeks as
part of a broad advance in some housing-related stocks. The
industry group ranked sixth out of 197 groups in Monday's IBD,
from 48th just three weeks earlier.
New brands and spinoffs have played a key role in the
company's growth. The company says 75% of revenue comes from
brands that it has developed.
The stock appears to be forming a new base, although its
Accumulation-Distribution Rating is low.