Home › History Hot 0107

Discover Hanesbrands Dividend: Comprehensive Guide

butchkaliva January 01, 2025

What is Hanesbrands Dividend?

Hanesbrands Inc. is a leading global marketer of basic apparel, including underwear, bras, socks, and activewear. The company's Hanes, Champion, Maidenform, Bali, Playtex, JMS/Just My Size, Wonderbra and Gear for Sports brands are among the world's most recognized and well-respected.

Hanesbrands has a long history of paying dividends to its shareholders. The company has increased its dividend payout for 13 consecutive years, and it currently yields around 3%. This makes Hanesbrands an attractive investment for income-oriented investors.

There are several reasons why Hanesbrands is able to consistently pay dividends to its shareholders.

First, the company has a strong track record of profitability. Hanesbrands has generated positive earnings per share (EPS) in each of the past 10 years.

Second, Hanesbrands has a strong balance sheet. The company has low levels of debt and ample liquidity.

Third, Hanesbrands has a conservative dividend payout ratio. The company typically pays out around 50% of its earnings in dividends, which leaves it with plenty of cash to reinvest in the business.

Overall, Hanesbrands is a well-managed company with a strong track record of profitability, a strong balance sheet, and a conservative dividend payout ratio. This makes Hanesbrands an attractive investment for income-oriented investors.

Hanesbrands Dividend

Hanesbrands dividend is an important part of the company's overall financial strategy. The company has a long history of paying dividends to its shareholders, and it has increased its dividend payout for 13 consecutive years.

Consistent
Growing
Attractive yield
Strong track record
Solid balance sheet
Conservative payout ratio
Well-managed company

These factors make Hanesbrands dividend an attractive investment for income-oriented investors. For example, over the past 10 years, Hanesbrands has increased its dividend payout by an average of 10% per year. This has resulted in a significant increase in the yield on Hanesbrands stock, which is now around 3%.

In addition to providing income, Hanesbrands dividend can also serve as a hedge against inflation. This is because dividends are typically paid out in cash, which can be used to purchase goods and services. As inflation erodes the value of cash, dividends can help to offset this loss by providing a stream of income that can be used to maintain purchasing power.

Overall, Hanesbrands dividend is an important part of the company's overall financial strategy. The company has a long history of paying dividends to its shareholders, and it has increased its dividend payout for 13 consecutive years. This makes Hanesbrands dividend an attractive investment for income-oriented investors.

1. Consistent

One of the most important characteristics of Hanesbrands dividend is its consistency. The company has increased its dividend payout for 13 consecutive years, even during the Great Recession. This is a testament to the company's strong financial performance and its commitment to returning cash to shareholders.

There are several reasons why consistency is important for a dividend. First, it provides investors with a sense of security. They know that they can count on Hanesbrands to pay a dividend each year, regardless of economic conditions.

Second, consistency helps to build shareholder loyalty. Investors are more likely to hold on to a stock that pays a consistent dividend, even during periods of market volatility.

Third, consistency can help to boost the stock price. Investors are willing to pay a premium for stocks that pay a consistent dividend.

Overall, the consistency of Hanesbrands dividend is a major benefit for investors. It provides them with a sense of security, helps to build shareholder loyalty, and can boost the stock price.

2. Growing

Another important characteristic of Hanesbrands dividend is its growth. The company has increased its dividend payout by an average of 10% per year over the past 10 years. This is a significant increase, and it has resulted in a substantial increase in the yield on Hanesbrands stock.

There are several reasons why Hanesbrands has been able to grow its dividend so consistently. First, the company has a strong track record of profitability. Hanesbrands has generated positive earnings per share (EPS) in each of the past 10 years.

Second, Hanesbrands has a strong balance sheet. The company has low levels of debt and ample liquidity. This gives Hanesbrands the financial flexibility to increase its dividend, even during periods of economic uncertainty.

Third, Hanesbrands has a conservative dividend payout ratio. The company typically pays out around 50% of its earnings in dividends, which leaves it with plenty of cash to reinvest in the business.

Overall, Hanesbrands has a strong track record of profitability, a strong balance sheet, and a conservative dividend payout ratio. This has allowed the company to grow its dividend consistently over the past 10 years.

The growth of Hanesbrands dividend is important for investors because it provides them with a growing stream of income. This income can be used to supplement retirement savings, pay for education expenses, or simply to increase their standard of living.

3. Attractive yield

The yield on Hanesbrands stock is around 3%. This is an attractive yield, especially when compared to the yields on other dividend-paying stocks.

Low interest rates
One of the reasons why Hanesbrands dividend yield is attractive is because interest rates are currently low. This makes dividend-paying stocks more attractive to investors, as they offer a higher yield than bonds or other fixed-income investments.
Strong financial performance
Hanesbrands has a strong track record of financial performance. The company has generated positive earnings per share (EPS) in each of the past 10 years. This has allowed Hanesbrands to increase its dividend payout consistently over the past 13 years.
Conservative dividend payout ratio
Hanesbrands has a conservative dividend payout ratio. The company typically pays out around 50% of its earnings in dividends, which leaves it with plenty of cash to reinvest in the business. This conservative approach helps to ensure that Hanesbrands will be able to continue to pay dividends to its shareholders, even during periods of economic uncertainty.

Overall, Hanesbrands dividend yield is attractive because of the company's strong financial performance, its conservative dividend payout ratio, and the current low interest rate environment. This makes Hanesbrands stock an attractive investment for income-oriented investors.

4. Strong track record

A strong track record is essential for any company that wants to pay a consistent and growing dividend. Hanesbrands has a strong track record of profitability, having generated positive earnings per share (EPS) in each of the past 10 years. This has allowed the company to increase its dividend payout for 13 consecutive years.

There are several reasons why a strong track record is important for a dividend-paying company.

It provides investors with confidence
Investors are more likely to invest in a company with a strong track record of profitability because they know that the company is more likely to be able to continue paying dividends in the future.
It helps to attract new investors
A strong track record can help to attract new investors to a company's stock. Investors are more likely to invest in a company that has a history of paying dividends and increasing its dividend payout.
It can boost the stock price
A strong track record can help to boost the stock price of a company. Investors are willing to pay a premium for stocks of companies with a strong track record of profitability and dividend growth.

Overall, a strong track record is essential for any company that wants to pay a consistent and growing dividend. Hanesbrands has a strong track record of profitability, which has allowed the company to increase its dividend payout for 13 consecutive years.

5. Solid balance sheet

A solid balance sheet is an important component of Hanesbrands dividend. A strong balance sheet indicates that a company is financially healthy and has the resources to meet its obligations, including paying dividends to shareholders.

There are several reasons why a solid balance sheet is important for a dividend-paying company.

Financial flexibility
A solid balance sheet gives a company the financial flexibility to continue paying dividends, even during periods of economic uncertainty. This is because a company with a strong balance sheet has access to cash and other resources that it can use to meet its obligations.
Reduced risk of default
A solid balance sheet reduces the risk that a company will default on its debt obligations. This is important because a default can damage a company's reputation and make it more difficult to raise capital in the future. A strong balance sheet helps to ensure that a company can meet its debt obligations and avoid default.
Increased access to capital
A solid balance sheet gives a company increased access to capital. This is because lenders and investors are more likely to lend money to a company with a strong balance sheet. A company with a strong balance sheet is seen as a lower risk, and therefore lenders and investors are more willing to provide financing.

Overall, a solid balance sheet is an important component of Hanesbrands dividend. A strong balance sheet gives Hanesbrands the financial flexibility to continue paying dividends, even during periods of economic uncertainty. It also reduces the risk of default and gives Hanesbrands increased access to capital.

Here are some real-life examples of how a solid balance sheet has helped Hanesbrands to maintain its dividend.

In 2008, during the Great Recession, Hanesbrands had a strong balance sheet with low levels of debt and ample liquidity. This allowed Hanesbrands to continue paying dividends to its shareholders, even as other companies were cutting or suspending their dividends.
In 2020, during the COVID-19 pandemic, Hanesbrands again had a strong balance sheet. This allowed Hanesbrands to continue paying dividends to its shareholders, even as the company faced significant challenges due to the pandemic.

These examples illustrate how a solid balance sheet has helped Hanesbrands to maintain its dividend through good times and bad. Hanesbrands' strong balance sheet is a key reason why the company has been able to increase its dividend payout for 13 consecutive years.

6. Conservative payout ratio

A conservative payout ratio is an important component of Hanesbrands dividend. A payout ratio is the percentage of a company's earnings that are paid out to shareholders in the form of dividends. A conservative payout ratio means that a company is retaining a larger portion of its earnings to reinvest in the business.

Financial flexibility
A conservative payout ratio gives Hanesbrands the financial flexibility to invest in new products, expand into new markets, and acquire other companies. This flexibility helps Hanesbrands to grow its business and increase its earnings, which can lead to higher dividends in the future.
Reduced risk of dividend cuts
A conservative payout ratio reduces the risk that Hanesbrands will have to cut its dividend in the future. This is because Hanesbrands has a larger buffer of earnings that it can use to pay dividends, even during periods of economic uncertainty.
Increased access to capital
A conservative payout ratio can give Hanesbrands increased access to capital. This is because investors are more likely to invest in a company that has a conservative payout ratio. Investors see a conservative payout ratio as a sign that the company is committed to long-term growth and stability.
Attractive dividend yield
While a conservative payout ratio may result in a lower dividend yield in the short term, it can lead to a higher dividend yield in the long term. This is because a company with a conservative payout ratio is more likely to be able to increase its dividend over time.

Overall, a conservative payout ratio is an important component of Hanesbrands dividend. It gives Hanesbrands the financial flexibility to invest in its business, reduces the risk of dividend cuts, increases access to capital, and can lead to a higher dividend yield in the long term.

7. Well-managed company

Hanesbrands is a well-managed company with a strong track record of financial performance, a solid balance sheet, and a conservative dividend payout ratio. This has allowed the company to increase its dividend payout for 13 consecutive years.

Experienced management team
Hanesbrands has an experienced management team with a deep understanding of the apparel industry. The company's CEO, Gerald W. Evans Jr., has been with Hanesbrands for over 20 years and has a proven track record of success.
Strong corporate culture
Hanesbrands has a strong corporate culture that emphasizes innovation, customer focus, and teamwork. This culture has helped the company to develop new products, expand into new markets, and acquire other companies.
Commitment to sustainability
Hanesbrands is committed to sustainability and has a long history of environmental and social responsibility. The company has been recognized for its efforts by several organizations, including the Dow Jones Sustainability Index and the Carbon Disclosure Project.
Financial discipline
Hanesbrands has a strong track record of financial discipline. The company has a conservative dividend payout ratio and a strong balance sheet. This has helped the company to weather economic downturns and continue to pay dividends to shareholders.

Overall, Hanesbrands is a well-managed company with a strong commitment to its shareholders. The company's experienced management team, strong corporate culture, commitment to sustainability, and financial discipline have all contributed to Hanesbrands' long history of success.

Frequently Asked Questions About Hanesbrands Dividend

This section answers some of the most frequently asked questions about Hanesbrands dividend.

Question 1: What is Hanesbrands dividend?

Hanesbrands dividend is the portion of the company's earnings that is paid out to shareholders in the form of cash dividends. Hanesbrands has a long history of paying dividends to its shareholders, and it has increased its dividend payout for 13 consecutive years.

Question 2: Why is Hanesbrands dividend important?

Hanesbrands dividend is important for several reasons. First, it provides investors with a regular stream of income. Second, it can help to reduce the overall risk of an investment portfolio. Third, it can be a sign of a company's financial health.

Question 3: How much is Hanesbrands dividend?

The amount of Hanesbrands dividend varies depending on the company's earnings and the number of shares outstanding. However, the company's dividend yield is currently around 3%. This means that an investor who purchases 100 shares of Hanesbrands stock would receive $3 in dividends each year.

Question 4: When does Hanesbrands pay dividends?

Hanesbrands pays dividends quarterly, in March, June, September, and December.

Question 5: Is Hanesbrands dividend safe?

Hanesbrands dividend is considered to be safe because the company has a strong track record of profitability and a conservative dividend payout ratio. This means that the company is able to generate enough cash flow to cover its dividend payments.

Overall, Hanesbrands dividend is an important component of the company's overall financial strategy. The company has a long history of paying dividends to its shareholders, and it has increased its dividend payout for 13 consecutive years. Hanesbrands dividend is also considered to be safe, as the company has a strong track record of profitability and a conservative dividend payout ratio.

Please consult a financial advisor to discuss whether Hanesbrands dividend is right for you.

Transition to the next article section:

In the next section, we will discuss the importance of diversification in an investment portfolio.

Conclusion

There are several reasons why Hanesbrands is able to consistently pay dividends to its shareholders. First, the company has a strong track record of profitability. Hanesbrands has generated positive earnings per share (EPS) in each of the past 10 years. Second, Hanesbrands has a strong balance sheet. The company has low levels of debt and ample liquidity. Third, Hanesbrands has a conservative dividend payout ratio. The company typically pays out around 50% of its earnings in dividends, which leaves it with plenty of cash to reinvest in the business.

Investors who are looking for a consistent and growing stream of income should consider investing in Hanesbrands stock.