STEVEN MADDEN LTD (NASDAQ:SHOO) – A Dividend Stock Worth Considering

STEVEN MADDEN LTD (NASDAQ:SHOO) was identified as a strong dividend candidate by our stock screener. The company combines a solid dividend profile with healthy financials and profitability, making it an interesting option for income-focused investors.

Key Dividend Strengths

• Attractive Yield: SHOO offers a dividend yield of 3.40%, which is above the S&P 500 average of 2.36%. It also ranks higher than most peers in its industry.
• Sustainable Payout: The company pays out 36% of its earnings as dividends, a manageable ratio that suggests the dividend is well-covered.
• Growing Dividends: SHOO has increased its dividend at an annual rate of 7.91% over the past five years, indicating a commitment to rewarding shareholders.
• Track Record: The company has maintained dividend payments for over five years without reductions, adding reliability for income investors.

Financial Health & Profitability

• Strong Balance Sheet: SHOO has no debt, a rare strength that enhances financial stability. Its Altman-Z score of 6.31 signals low bankruptcy risk.
• High Profitability: The company delivers a Return on Equity (ROE) of 19.98% and a Return on Invested Capital (ROIC) of 19.06%, outperforming most industry peers.
• Reasonable Valuation: Trading at a P/E ratio of 9.33, SHOO appears undervalued compared to both its sector and the broader market.

While past performance is no guarantee, SHOO’s combination of yield, growth, and financial strength makes it a noteworthy candidate for dividend portfolios.

Our Best Dividend Stocks screener provides more high-quality dividend ideas.
For a deeper dive, review the full fundamental report on SHOO.

Disclaimer

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