Winnebago Industries (NYSE:WGO) – A Dividend Stock Worth Considering

Winnebago Industries (NYSE:WGO) stands out as a potential candidate for dividend investors, according to our Best Dividend Stocks screen. The company combines a strong dividend profile with reasonable profitability and financial health, making it an interesting option for income-focused portfolios.

Key Dividend Strengths

• Attractive Yield: WGO currently offers a dividend yield of 4.04%, well above the S&P 500 average of 2.41%. The yield is also higher than 92% of its peers in the automobiles industry.
• Consistent Growth: The company has increased its dividend at an average annual rate of 23.63% over the past years, demonstrating a commitment to rewarding shareholders.
• Reliable Track Record: WGO has paid dividends for at least 10 years without reductions, indicating stability in its payout policy.

Profitability & Financial Health

While recent earnings have been under pressure, WGO maintains a solid financial foundation:

• Profitability Rating (6/10): The company has been profitable over the past five years, with margins that outperform many industry peers.
• Strong Balance Sheet: WGO holds a Health Rating of 7/10, supported by a manageable debt-to-equity ratio (0.44) and a healthy Altman-Z score (3.26), suggesting low bankruptcy risk.
• Positive Cash Flow: Despite recent challenges, WGO has maintained positive operating cash flow, a key factor in sustaining dividends.

Valuation Considerations

WGO trades at a forward P/E of 8.05, below both the industry and S&P 500 averages, suggesting reasonable valuation levels. Analysts expect earnings to grow by 25% annually, which could support future dividend increases.

For a deeper look, review the full fundamental report on WGO.

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Disclaimer

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