- Solid Balance Sheet
- Revenue Growth of over 9% annually
- Dividend Growth averaging 12% annually
- Covered call options with a potential 14% return
DKS is not a perfect parallel to FL but for an income investor, however, it is a compelling buy based on my fundamentals.
Yield is a touch low at 2.29% but dividend growth has been consistently in the 12% range annually. As an income investor I love that metric. Quarterly dividend in 2017 is $.17 versus .125 three years ago.
Revenue is growing as well and that is hard to find in a retailer. Over the past three years revenue growth has been a solid 9.4% annually. Most recent 4 quarters $8,409 versus three years ago $6,599. With virtually no debt (D/E ratio is .0028) and a P/E ratio (price to earnings) around 12, I see value and income.
Clearly this stock has suffered as the 52 week high is $56.25 and 15 months ago DKS hit $62.88. Stock holders have really taken it on the chin with DKS.
The icing on this cake is the covered call I sold as soon as my buy executed. See the table below.
DKS has not yet announced their next ex-dividend date, but if history repeats that should be about March 8, 2018 which is before the call expires. Nice 14% upside potential
I don't have time to flesh out all the details of DKS with all the graphs that make a post pretty but you can look up the key elements.
Good income investing.
