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

Winnebago Industries (NYSE:WGO) stands out as an attractive option for dividend investors, according to our screening criteria. The company, known for its recreational vehicles and marine products, offers a compelling mix of dividend reliability, financial health, and profitability.

Key Strengths for Dividend Investors

• Dividend Yield & Growth – WGO currently offers a dividend yield of 3.75%, which is above both the industry average (3.58%) and the S&P 500 average (2.36%). The company has increased its dividend at an impressive annualized rate of 23.63% over the past five years, signaling strong commitment to shareholders.
• Dividend Reliability – WGO has maintained dividend payments for at least 10 years without any cuts, reinforcing its track record of consistency.
• Financial Health – With a solid ChartMill Health Rating of 7, WGO demonstrates strong solvency and liquidity. The company’s Altman-Z score (3.31) indicates low bankruptcy risk, and its debt-to-equity ratio (0.44) is better than 68% of its industry peers.
• Profitability – Despite recent margin pressures, WGO’s profitability remains decent with a ChartMill Profitability Rating of 6. Its operating margin (2.29%) and return on invested capital (2.73%) still outperform most competitors.

Areas to Watch

• Earnings & Revenue Trends – WGO’s earnings declined over the past year, but analysts expect a rebound with 23.65% EPS growth in the coming years. Revenue growth has slowed but remains positive.
• Payout Ratio – Currently negative due to recent earnings weakness, which warrants monitoring to ensure dividend sustainability.

For a deeper dive into WGO’s fundamentals, review the full fundamental report here.

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Disclaimer

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