Daily Stock Analysis: VF Corp

By Fredrik Arnold

Wednesday, March 22, 2023 6:47 PM EST

Image Source: Unsplash

VF Corporation bears the ticker symbol VFC, and this is my first mention of VFC for this new Viking Portfolio or any of my previous seven dog of the week folios.

VF designs, produces and distributes branded apparel and accessories. Its largest apparel categories include action sports, outdoor, and workwear.

Its portfolio of about a dozen brands includes Vans, The North Face, Timberland, Supreme, and Dickies. VF markets its products in the Americas, Europe, and Asia-Pacific through wholesale sales to retailers, e-commerce, and branded stores owned by the company and partners.

The company has grown through multiple acquisitions and traces its roots to 1899 and is headquartered in Denver, Colorado.

Three key data points gauge VF Corp, or any dividend paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

VFC Price

VF Corp price per share was $21.60 at Monday’s market close. In the past year, VF share price fell $35.89 or about 62%.

If VF stock trades in the range of $18.00 to $38.00 this next year, its recent $21.60 share price might reach $26.00 by next year. That upside estimate of $4.40 is based on about half the the median of one year price estimates from 21 analyst covering VF Corp for brokers.

VFC Dividend

VF Corp’s most recent forward looking annual dividend of $1.20 casts a forward annual yield of 5.60%.

VFC Returns

Adding the $1.20 annual estimated

VF Corp dividend to my estimatedprice increase, that is, a $4.40 one-year price upside estimate, reveals a $5.60 potential gross gain estimate per share.

At Tuesday’s $21.60 closing price, a little under $1000 would buy 46 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated $5.60 gross gain makes a net gain of $5.38 X 46 shares = $247.48 for a 24.75% net gain including A 5.156% annual dividend yield.

In the next year our $1K investment in shares of VFC should generate $55.60 in cash dividends. Furthermore, a single share of VFC at Tuesday’s $21.60 price is over 2.5 times less than the $55.60 estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is liikely a proper time to buy VFC shares, based on their dividends for 2023. The current dividend from $1K invested is 2.57 times greater than the VF Corp single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of VF Corp. Only time and money invested in this stock will determine its future market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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