SHOE CARNIVAL INC (NASDAQ:SCVL) - A Reliable Dividend Stock With Strong Fundamentals

SHOE CARNIVAL INC (NASDAQ:SCVL) stands out as a compelling choice for dividend investors, according to our Best Dividend stock screener. The company combines a solid dividend profile with healthy profitability and financial stability, making it a well-rounded candidate for income-focused portfolios.

Dividend Strength

• Attractive Yield: SCVL offers a dividend yield of 3.16%, which is higher than the S&P 500 average of 2.42%. It also ranks favorably within its industry, outperforming 90.91% of peers.
• Consistent Growth: The company has increased its dividend at an impressive annual rate of 22.78% over the past years, demonstrating a commitment to rewarding shareholders.
• Reliable Track Record: SCVL has paid dividends for at least 10 years without any reductions, reinforcing its dependability for income investors.
• Sustainable Payout: With a payout ratio of 23.43%, the dividend is well-covered by earnings, reducing the risk of future cuts.

Profitability & Financial Health

• Strong Margins: SCVL maintains a profit margin of 5.58%, outperforming 78.51% of industry peers. Its operating margin of 6.85% also ranks in the top quartile.
• No Debt: The company carries no outstanding debt, providing a strong financial cushion and reducing risk in uncertain economic conditions.
• Healthy Liquidity: A current ratio of 3.67 indicates ample short-term financial flexibility, further supporting dividend sustainability.

Valuation Considerations

• Reasonable P/E Ratio: SCVL trades at a P/E of 8.82, significantly below both the industry average and the S&P 500, suggesting potential undervaluation.
• Positive Cash Flow: Consistent positive cash flow generation reinforces the company’s ability to maintain and grow dividends.

While SCVL’s growth outlook appears modest, its strong dividend credentials, profitability, and financial health make it a noteworthy pick for income investors.

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

Disclaimer

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