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Shoe Carnival's (SCVL) Board Approves 20% Dividend Rate Hike

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Shoe Carnival, Inc. (SCVL - Free Report) has announced that it is rewarding shareholders with a hike in the quarterly dividend rate. The improved rewards to shareholders reflect a strong cash position and belief in future profitability.

Shoe Carnival’s shares gained 0.5% yesterday, eventually closing the trading session at $22.40.

Inside the Headlines

As revealed, Shoe Carnival’s board of directors approved a 20% or 2 cents per share hike in the quarterly dividend rate, which now moved from 10 cents to 12 cents. Shoe Carnival will pay out this revised quarterly dividend on Oct 17, 2023, to shareholders on record as of Oct 3.

It’s worth noting that in March 2023, the company raised the quarterly dividend rate by 11% from 9 cents to 10 cents per share.

Sound Shareholder-Friendly Policies

SCVL firmly believes in rewarding shareholders handsomely through dividend payments. In the last five fiscal years (2018-2022), the company’s paid-out cash dividend increased from 31.5 cents per share in fiscal 2018 to 36 cents in fiscal 2022.

The company paid out a dividend of $5.7 million in cash to its shareholders in the first six months of fiscal 2023, up 11.8% from $5.1 million disbursed in the year-ago period.

Zacks Rank, Price Performance and Earnings Estimate Trend

With a market capitalization of $612.9 million, Shoe Carnival currently carries a Zacks Rank #4 (Sell). The company has been subject to a tough macroeconomic environment with high inflation and rising interest rates, which has been affecting its product demand. Rising costs and operating expenses also remain a concern. However, its strong liquidity position acts as its strength. It ended the second quarter of fiscal 2023 with $46.8 million in cash and marketable securities and no outstanding debt.


Zacks Investment Research
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In the past year, its shares have gained 7.4%, underperforming the industry’s increase of 10.3%.

In the past 30 days, the Zacks Consensus Estimate for earnings decreased by 11.9% to $3.17 for fiscal 2023 and 12.4% to $3.40 for fiscal 2024. Also, earnings estimates for the third quarter of fiscal 2023 declined by 20.3% to $1.02 per share.

Stocks to Consider

Here we have highlighted three better-ranked stocks from the same space.

Abercrombie & Fitch (ANF - Free Report) , a specialty retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ANF has a trailing four-quarter earnings surprise of 724.8%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 10.4% from the year-ago reported figure.

American Eagle Outfitters (AEO - Free Report) , a retailer of casual apparel, accessories and footwear, currently flaunts a Zacks Rank #1. AEO delivered an average earnings surprise of 43.2% in the last four quarters.

The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales indicates an increase of 1.5% from the year-ago reported figure.

Arcos Dorados Holdings Inc. (ARCO - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 35%, on average.

The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests increases of 19.2% and 13%, respectively, from the year-ago period’s reported levels.

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