Ralph Lauren’s (RL) stock is marching higher after the company raised its quarterly dividend by 10%.
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Going forward, the retailer known for its polo shirts will pay a cash dividend to stockholders of $1 per share. That’s up 10% from a previous distribution of $0.91. The new dividend payment lifts the yield on RL stock to 1.06%.
The new dividend is payable to shareholders on July 10 and carries an ex-dividend date of June 26. This is the fifth consecutive year in which Ralph Lauren has raised its quarterly dividend. RL stock was up about 1% on May 22 immediately after the new dividend was announced.
Ralph Lauren’s stores by geography. Source: The Fly
Ralph Lauren’s Sales Growth
Ralph Lauren raised its dividend as it continues to report strong sales growth. The clothing retailer posted a 17% year-over-year rise in its revenue as its global sales continue to impress. In its most recent quarter, the sales growth was driven by Asia, where revenue increased 31% from a year earlier.
Ralph Lauren continues to capitalize on its strong brand and position in the luxury apparel market. The company’s sales have remained strong as wealthy consumers continue to spend money even as low-income consumers struggle with rising gas prices and other inflationary pressures.
Is RL Stock a Buy?
Ralph Lauren’s stock has a consensus Strong Buy rating among 11 analysts. That rating is based on 11 Buy recommendations issued in the last three months. The average RL price target of $436.91 implies 16% upside from current levels.
