Tuesday, August 19, 2014

Recent Buy VF Corporation (VFC)


Providence Ghost Tour-Prospect Terrace Park, Providence RI

.80 Shares of VFC @ $62.38 

Total Capital Invested-$50


VF Corp. is one of the world’s largest apparel manufacturers. These famous brands are sold in major retail and online stores all over the world. You can find  VFC products  in stores like Walmart, Nordstrom, and Kohl’s.


Key Points
  • Despite its amazing growth in EPS and revenue in recent years, VFC Corporation appears a little expensive with a P/E of 22.
  • Dividend yield is relatively low at 1.70%, but growing at an amazing pace.
  • Balance sheet perfection makes VFC even more interesting.
  • A 4:1 split occurred on December 10th 2013.
  • The company is trading at $62.38
  • It is a dividend aristocrat meaning it has paid an increasing dividend in each of the past 25 years.

There are several factors that make VFC an exciting company to have in my portfolio. This happens to me the only apparel company in my portfolio at this time. VFC has quality brands, great leadership and innovative vision to look forward to. Another great aspect of the company is that they are a hybrid company—both retailer and wholesaler. The company has over 6 million square feet of retail space that it owns or leases for its retail stores such as North Face, Van’s, Nautica and Timberland. Take a look below to see all the brands owned by VFC. 
Jeans Brands


  • Lee Jeans
  • Rustlers
  • 7 For All Mankind
  • 20X
  • Chic
  • Rock & Republic


Imagewear Brands


  • Red Kap
  • The Force 
  • Bulwark Protective Apparel
  • Chef Designs
  • Majestic Athletic


Outdoor Brands


  • Eastpak
  • JanSport
  • Kipling Europe
  • Napapijri
  • The North Face
  • Reef
  • Vans
  • Eagle Creek
  • SmartWool
  • Timberland
  • lucy


Sportswear Brands


  • Nautica
  • Kipling U.S.


Uniform Brands

  • Horace Small


Contemporary Brands

  • 7 for all Mankind
  • Ella Moss
  • Splendid


I am sure that you have encountered or possibly own some of the clothing mentioned above. I know The North Face has become quite popular here in New England during the cold winter months. I am also a proud owner of Timberland winter boots. There is so much to like about this company and I am looking forward to buying more shares soon. 

7 comments:

  1. Very interesting, I'm assuming this is a DRIP purchase? The dividend growth rate is pretty good but the dividend yield is too low for my liking. My requirement is typically 2.5% or more.

    ReplyDelete
  2. I used Loyal3 for the cash back rewards on this purchase. I have been chasing low dividend, high growth companies lately. One of my favorites is DIS because they have a ton of growth potential but the yield is very low at 1%. VFC has been increasing dividends for past 25 years so it's worth a look at.

    ReplyDelete
  3. I just added some VFC on Wednesday through my Loyal3 account. The trade hasn't closed yet but it's gone through. I'd love to see the markets decline from here to let me invest both small and large amounts of capital quicker.

    ReplyDelete
    Replies
    1. Hey PIP,
      I agree that it is getting hard to find value in the market these days. VFC is one of those stocks that are a little over valued but the long term growth is their. I am hoping to add some more shares if we get a dip in price. Best regards!

      Delete
  4. Love my VFC. I know many dividend investors don't like VFC since they see it as a fashion company like ARO, AEO or ANF and think that fickle trends can make or break sales. I see VFC as a bread and butter type clothing company controlling many of the top brands that offer function with form. I think the other stocks I mention are all about form. I'm happy VFC had the 4:1 stock split recently. Perhaps more people might find their shares more appealing at these "reduced" prices though I'd like to buy under $60. Thanks for sharing.

    ReplyDelete
    Replies
    1. Divhut,
      I really like VFC and I am hoping they dip a little to add some more. This is really the only apparel stock I would own besides Nike. I am confident the long term dividend growth will make VFC a good buy these days. If the price dips to $60 I'll be ready to purchase some more shares. Thanks!

      Delete
  5. If the price dips to $60 I'll be ready to purchase some more shares. Thanks!

    gclub

    ReplyDelete