February 7, 2023
70
Safe
V.F. Corp (VFC) cut its dividend by 41%. Excess inventory, weakening apparel demand, and a desire to protect the firm's BBB+ rated balance sheet led management to sacrifice V.F. Corp's 50-year dividend growth streak.
We had expected the company behind The North Face jackets and Vans shoes to use its healthy liquidity position to defend its dividend until industry conditions improved and returned the firm to a sustainable payout ratio.
Going forward, we will be more critical of a company's short-term challenges despite a lengthy dividend growth track record.
We had expected the company behind The North Face jackets and Vans shoes to use its healthy liquidity position to defend its dividend until industry conditions improved and returned the firm to a sustainable payout ratio.
Going forward, we will be more critical of a company's short-term challenges despite a lengthy dividend growth track record.