Bath & Body Works (BBWI) Declares $0.20 Dividend

Bath & Body Works said on February 3, 2023 that its board of directors declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Shareholders of record as of February 16, 2023 will receive the payment on March 3, 2023. Previously, the company paid $0.20 per share.

At the current share price of $46.85 / share, the stock's dividend yield is 1.71%. Looking back five years and taking a sample every week, the average dividend yield has been 5.23%, the lowest has been 0.75%, and the highest has been 16.36%. The standard deviation of yields is 3.74 (n=197).

The current dividend yield is 0.94 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.19. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is -0.33%.

Analyst Price Forecast Suggests 9.22% Upside

As of February 6, 2023, the average one-year price target for Bath & Body Works is $51.17. The forecasts range from a low of $39.39 to a high of $79.80. The average price target represents an increase of 9.22% from its latest reported closing price of $46.85.

The projected annual revenue for Bath & Body Works is $7,624MM, a decrease of 0.98%. The projected annual EPS is $3.19, a decrease of 20.34%.

Fund Sentiment

There are 1100 funds or institutions reporting positions in Bath & Body Works. This is a decrease of 40 owner(s) or 3.51%.

Average portfolio weight of all funds dedicated to US:BBWI is 0.2133%, an increase of 15.6523%. Total shares owned by institutions decreased in the last three months by 0.52% to 235,066K shares.

What are large shareholders doing?

Lone Pine Capital holds 20,630,231 shares representing 9.03% ownership of the company. In it's prior filing, the firm reported owning 22,221,713 shares, representing a decrease of 7.71%. The firm increased its portfolio allocation in BBWI by 12.39% over the last quarter.

Third Point holds 8,135,000 shares representing 3.56% ownership of the company.

T. Rowe Price Investment Management holds 8,072,722 shares representing 3.53% ownership of the company.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 6,456,515 shares representing 2.83% ownership of the company. In it's prior filing, the firm reported owning 6,665,462 shares, representing a decrease of 3.24%. The firm increased its portfolio allocation in BBWI by 22.28% over the last quarter.

Steadfast Capital Management holds 6,030,732 shares representing 2.64% ownership of the company. In it's prior filing, the firm reported owning 6,158,172 shares, representing a decrease of 2.11%. The firm increased its portfolio allocation in BBWI by 45.70% over the last quarter.

Bath & Body Works Background Information
(This description is provided by the company.)

Bath & Body Works is one of the world's leading specialty retailers and home to America's Favorite Fragrances® offering a breadth of exclusive fragrances for the body and home, including the #1 selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. For more than 30 years, customers have looked to Bath & Body Works for quality, on-trend products and the newest, freshest fragrances. Today, these fragrant products can be purchased at more than 1,750 company-operated Bath & Body Works locations in the U.S. and Canada, and more than 300 international franchised locations, as well as on bathandbodyworks.com.

This story originally appeared on Fintel.