- My primary goal is to buy quality companies that will share their success with me in the form of increasing dividends.
- Williams-Sonoma's second dividend increase of the year was impressive at 20.3%, and despite all the dividend increases lately, the dividend payout ratio will decline from last year to this year.
- The fuel that delivered Williams-Sonoma to the dividend increase promised land was a 35.6% year-over-year increase in first-half revenue and a near tripling of non-GAAP diluted EPS.
- My inputs into the DDM and DCF model suggest that Williams-Sonoma is trading at a 9% discount to fair value.
- Williams-Sonoma's 1.6% yield, 8-9% future annual earnings growth, and 1% annual valuation multiple expansion offer attractive annual total return potential with plenty of dividend growth as well.
For further details see:
Williams-Sonoma: A Dividend Growth Machine