For the fiscal year ending Jan. 29, the company's net revenue of $8.7 billion grew by 5.2% from the previous year. Its comparable brand revenue was up 6.5%, and when looking at a three-year comparable, that percentage jumps to 45%. Meanwhile, the company's diluted earnings per share of $16.32 was up by 11% year over year.
It was a stellar performance by the company and as a result, Williams-Sonoma announced that it would be increasing its dividend by 15%. At $0.90 every quarter, the new dividend will pay $3.60 on an annual basis, putting its yield at around 3.1%. That's well above the S&P 500 average, which is approximately 1.7%.
Investors will also benefit from a generous new stock repurchase authorization, which the Board of Directors approved for $1 billion. Share buybacks can help lift a stock's price and lead to a higher price and a better return.
Williams-Sonoma stock could use a boost, as it isn't trading far from its 52-week low of $101.58. Trading at less than eight times earnings, the stock provides investors with some good value and offers a margin of safety in case there are some headwinds that lead to trouble for its financials in future quarters. But with the business showing strength and resiliency, this can be a solid dividend stock to hang on to buy right now.