SHOE CARNIVAL INC (NASDAQ:SCVL) - A Dividend Stock Worth Considering

SHOE CARNIVAL INC (NASDAQ:SCVL) stands out as a potential candidate for dividend investors, according to our screening criteria. The company combines a solid dividend profile with healthy profitability and financial stability, making it an interesting option for income-focused portfolios.

Dividend Strength

• Attractive Yield: SCVL offers a dividend yield of 3.13%, which is higher than the S&P 500 average of 2.40%.
• Reliable Track Record: The company has paid dividends for at least 10 years without reductions, demonstrating commitment to shareholders.
• Strong Growth: Dividends have grown at an average annual rate of 22.78% over the past five years.
• Sustainable Payout: With a payout ratio of 19.94%, SCVL retains ample earnings to reinvest while rewarding shareholders.

Profitability & Financial Health

• Solid Margins: SCVL maintains a profit margin of 6.13%, outperforming 79% of its specialty retail peers.
• Strong Balance Sheet: The company has no debt, contributing to a high Altman-Z score of 3.39, indicating low bankruptcy risk.
• Liquidity: A current ratio of 4.11 ensures SCVL can comfortably meet short-term obligations.

Valuation

• Undervalued Metrics: SCVL trades at a P/E ratio of 7.02, significantly below both the industry average (50.85) and the S&P 500 (26.17).
• Enterprise Value to EBITDA: The stock is cheaper than 92.5% of its industry peers based on this metric.

While SCVL’s growth outlook is modest, its combination of yield, dividend reliability, and financial strength makes it a compelling choice for income investors.

For more high-quality dividend stocks, explore our Best Dividend Stocks screener.
Review the full fundamental report on SCVL for deeper insights.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.