Buckle, Inc. Offers Attractive Dividend Yield Above 4%

On Thursday, shares of Buckle, Inc. (Symbol: BKE) yielded over 4% based on its quarterly dividend, which is annualized to $1.40. The stock traded as low as $34.67 that day. Dividends play a crucial role for investors, as history shows they provide a significant portion of the stock market’s total return. For instance, if you purchased shares of the iShares Russell 3000 ETF (IWV) on May 31, 2000, you would have paid $78.27 per share. By May 31, 2012, the share price had decreased to $77.79, resulting in a loss of $0.48, or a 0.6% decline over 12 years. However, during this period, you would have collected $10.77 per share in dividends, boosting your overall return to 13.15%. Even with dividends reinvested, the annual total return averages about 1.0%. In comparison, a sustainable yield above 4% from Buckle seems compelling.

Buckle, Inc. is a member of the Russell 3000, placing it among the largest 3,000 companies in the U.S. stock markets. However, dividend amounts are not always consistent and usually fluctuate with the company’s profitability. Analyzing the dividend history for BKE can aid in assessing whether the latest dividend is likely to persist, thereby helping investors gauge the expectation of a sustainable 4% annual yield.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.