Monday, October 21, 2013

Dividend Increase and Stock Split: VFC

VF Corporation (VFC) is increasing its quarterly dividend by 20.7%, from $0.87 to $1.05 per share, putting the company on track for its 41st consecutive year of dividend growth (news release). Given that I own 10 shares of VFC, my quarterly dividend increases from $8.70 to $10.50 and my yield on cost becomes 2.90%. The extra $7.20 in annual dividend income raises my forward 12-month dividend total to $2,932. Thus far this year, there have been dividend increases for 29 of the 31 stocks in my portfolio.

The company also announced a 4-for-1 stock split that will take effect by the end of the year. Once that happens, I will own 40 shares of VFC at an adjusted cost basis of $36.25 per share.


  1. I know that it changes nothing as far as a value basis for VFC, but I like the stock split because it makes it much easier to deal with options. I really like the company and with 41 consecutive years of dividend increases is hard to not like them. Especially given that the dividend is still increasing by crazy amounts.

    1. PIP: I also recognize that a stock split doesn't change a stock's value, but I suppose there's something to be said for the positive psychological effect it has on some shareholders. It is truly exceptional that the company can do 20% dividend increases after more than 40 consecutive years of dividend growth. I think VFC is well-positioned for future growth in earnings and dividends, so it should be a great long-term investment for me. I just wish I had bought more at the start of the year!