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The board of directors of this home, security and commercial building products company approved a quarterly dividend payout of 24 cents per share (96 cents per share annually), up from the previous payout of 23 cents (92 cents annually). The amount will be paid out on Mar 13, 2024, to shareholders of record as of Feb 23. Based on the closing price of $73.85 per share on Dec 12, 2023, the stock has a dividend yield of 1.3%.
Fortune Brands has been motivating shareholder value through regular dividend payments since May 2013. The company’s strong balance sheet position and long-term cash flow potential aided the hike after a 17.9% decline in dividend cash payments in 2023. In the first nine months of 2023, FBIN had a free cash flow of $659.9 million, up from $113.7 million reported in the prior comparable period.
Following the announcement, shares of FBIN gained 1% during the trading hours on Dec 12.
Fortune Brands focuses on strategic investments for inorganic as well as organic growth opportunities while ensuring market outgrowth, margins preservation and cash generation. The company leveraged its market position and gained growth momentum in the past year despite uncertain economic conditions.
Regarding inorganic growth initiatives, the company’s accretive acquisitions impressively added to its growth momentum. In June 2023, Fortune Brands acquired several businesses of ASSA ABLOY including Emtek and Schaub premium and luxury door and cabinet hardware business along with the U.S. and Canadian Yale and August residential smart locks business.
The Emtek and Schaub business is considered under Fortune Brands’ Water segment and the Yale and August business is considered under its Security segment. In the third quarter of 2023, the Water and the Security segments reported 8% and 32% year-over-year increases in net sales attributable to these acquisitions. The company is optimistic about the performance of these buyouts post its solid contributions in the quarter. FBIN believes that these accretive buyouts will aid it in transforming into a digitally disruptive company and a top-tier luxury goods producer.
Price Performance
Shares of Fortune Brands have gained 14% in the past three months compared with the Zacks Retail - Home Furnishings industry’s 15% growth. Although the company's shares have underperformed the industry, its strategic investments in acquisitions, favorable pricing and cost-reduction initiatives will drive its growth momentum in the upcoming quarters.
Image Source: Zacks Investment Research
Meanwhile, for 2023 and 2024, earnings are pegged at $3.88 per share and $4.21 per share, suggesting a decline of 8.5% and a gain of 8.3%, respectively, from the year-ago quarter’s reported figure. Furthermore, this Zacks Rank #3 (Hold) company has a VGM Score of A, backed by a Value Score of B, a Growth Score of B and a Momentum Score of A. Fortune Brands’ consistent focus on product innovations will help it to keep its growth momentum.
Key Picks
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
It has a trailing four-quarter earnings surprise of 28.9%, on average. The stock has increased 55.1% in the past year. The Zacks Consensus Estimate for WING’s 2023 sales and earnings per share (EPS) suggests an increase of 26.3% and 29.7%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) currently flaunts a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 223.6%, on average. The stock has risen 15.2% in the past year.
The Zacks Consensus Estimate for EAT’s fiscal 2024 sales and EPS indicates a 5.1% and a 26.2% rise, respectively, from the year-ago period’s levels.
The Gap, Inc. (GPS - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 137.9%, on average. The stock has gained 53.3% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales suggest an improvement of 0.9% but the EPS suggests a decline of 2.8%, from the year-ago period’s levels.
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Fortune Brands (FBIN) Cheers Investors With 4% Dividend Hike
Fortune Brands Innovations, Inc. (FBIN - Free Report) has boosted investors’ sentiments with a 4.3% hike in its quarterly cash dividend payments.
The board of directors of this home, security and commercial building products company approved a quarterly dividend payout of 24 cents per share (96 cents per share annually), up from the previous payout of 23 cents (92 cents annually). The amount will be paid out on Mar 13, 2024, to shareholders of record as of Feb 23. Based on the closing price of $73.85 per share on Dec 12, 2023, the stock has a dividend yield of 1.3%.
Fortune Brands has been motivating shareholder value through regular dividend payments since May 2013. The company’s strong balance sheet position and long-term cash flow potential aided the hike after a 17.9% decline in dividend cash payments in 2023. In the first nine months of 2023, FBIN had a free cash flow of $659.9 million, up from $113.7 million reported in the prior comparable period.
Following the announcement, shares of FBIN gained 1% during the trading hours on Dec 12.
Fortune Brands focuses on strategic investments for inorganic as well as organic growth opportunities while ensuring market outgrowth, margins preservation and cash generation. The company leveraged its market position and gained growth momentum in the past year despite uncertain economic conditions.
Regarding inorganic growth initiatives, the company’s accretive acquisitions impressively added to its growth momentum. In June 2023, Fortune Brands acquired several businesses of ASSA ABLOY including Emtek and Schaub premium and luxury door and cabinet hardware business along with the U.S. and Canadian Yale and August residential smart locks business.
The Emtek and Schaub business is considered under Fortune Brands’ Water segment and the Yale and August business is considered under its Security segment. In the third quarter of 2023, the Water and the Security segments reported 8% and 32% year-over-year increases in net sales attributable to these acquisitions. The company is optimistic about the performance of these buyouts post its solid contributions in the quarter. FBIN believes that these accretive buyouts will aid it in transforming into a digitally disruptive company and a top-tier luxury goods producer.
Price Performance
Shares of Fortune Brands have gained 14% in the past three months compared with the Zacks Retail - Home Furnishings industry’s 15% growth. Although the company's shares have underperformed the industry, its strategic investments in acquisitions, favorable pricing and cost-reduction initiatives will drive its growth momentum in the upcoming quarters.
Image Source: Zacks Investment Research
Meanwhile, for 2023 and 2024, earnings are pegged at $3.88 per share and $4.21 per share, suggesting a decline of 8.5% and a gain of 8.3%, respectively, from the year-ago quarter’s reported figure. Furthermore, this Zacks Rank #3 (Hold) company has a VGM Score of A, backed by a Value Score of B, a Growth Score of B and a Momentum Score of A. Fortune Brands’ consistent focus on product innovations will help it to keep its growth momentum.
Key Picks
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
Wingstop Inc. (WING - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a trailing four-quarter earnings surprise of 28.9%, on average. The stock has increased 55.1% in the past year. The Zacks Consensus Estimate for WING’s 2023 sales and earnings per share (EPS) suggests an increase of 26.3% and 29.7%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) currently flaunts a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 223.6%, on average. The stock has risen 15.2% in the past year.
The Zacks Consensus Estimate for EAT’s fiscal 2024 sales and EPS indicates a 5.1% and a 26.2% rise, respectively, from the year-ago period’s levels.
The Gap, Inc. (GPS - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 137.9%, on average. The stock has gained 53.3% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales suggest an improvement of 0.9% but the EPS suggests a decline of 2.8%, from the year-ago period’s levels.