Brown-Forman Corp Clicks Above 2% Yield Mark on Dividends

Brown-Forman Corp's shares are yielding over 2% based on its quarterly dividend, marking over 20 years of consecutive dividend growth. This sustainability is appealing for investors, especially when compared to historical total market returns. The report highlights the importance of dividends in driving total returns.

Date: 05-11-2024

AI Rating: 7

Brown-Forman Corp (Symbol: BF.B) recently reported that its shares are yielding above 2% based on its quarterly dividend. The annualized dividend of $0.8712 shows that the company has consistently grown its dividend for over 20 years. This performance is notable, as dividends historically account for a significant portion of total market returns.

The current yield appears attractive in light of historical comparisons. For instance, an investment in the S&P 500 ETF (SPY) from 1999 to 2012 showed a loss in share value of $4.67 per share, while dividends collected yielded a positive total return of 23.36%. This reinforces the notion that a stable dividend yield can enhance total returns, making Brown-Forman's yield appealing.

The fact that dividends are not always predictable ties to a company's profitability, yet Brown-Forman's lengthy dividend growth history instills confidence in its commitment to maintain or grow dividends. Such stability could positively influence investor sentiment and attract new shareholders seeking income through dividends.

Stocks: BF.B