Delving into the Dividend History, Yield, and Sustainability of bebe stores Inc

bebe stores Inc(BEBE) recently announced a dividend of $0.04 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-18. As investors eagerly anticipate this upcoming payment, the spotlight also illuminates the company’s dividend history, yield, and growth rates. Using the data from GuruFocus, let’s delve into bebe stores Inc’s dividend performance and gauge its sustainability.

Company Overview: bebe stores Inc

bebe stores Inc, a women’s apparel company, designs, develops, and produces a distinctive line of contemporary women’s apparel and accessories. It also owns and operates, through subsidiaries, rent-to-own Buddy’s Home Furnishings franchise stores located in states in the southeastern U.S., offering furniture, appliances, and electronics to consumers through rent-to-own agreements, along with other investments.

Unveiling the Dividend Dynamics of bebe stores Inc (BEBE)

Unveiling the Dividend Dynamics of bebe stores Inc (BEBE)

bebe stores Inc’s Dividend History

bebe stores Inc has maintained a consistent dividend payment record since 2018, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Unveiling the Dividend Dynamics of bebe stores Inc (BEBE)

Unveiling the Dividend Dynamics of bebe stores Inc (BEBE)

bebe stores Inc’s Dividend Yield and Growth

As of today, bebe stores Inc boasts a 12-month trailing dividend yield of 11.80% and a 12-month forward dividend yield of 13.27%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, bebe stores Inc’s annual dividend growth rate was 33.90%. Based on bebe stores Inc’s dividend yield and five-year growth rate, the 5-year yield on cost of bebe stores Inc stock as of today is approximately 11.80%.

Unveiling the Dividend Dynamics of bebe stores Inc (BEBE)

Unveiling the Dividend Dynamics of bebe stores Inc (BEBE)

Assessing Dividend Sustainability: Payout Ratio and Profitability

To gauge the sustainability of the dividend, it’s crucial to evaluate the company’s payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-03-31, bebe stores Inc’s dividend payout ratio is 7.76, which may suggest that the company’s dividend may not be sustainable. bebe stores Inc’s profitability rank of 3 out of 10 as of 2023-03-31 suggests the dividend may not be sustainable. The company has reported net profit in 5 years out of the past 10 years.

Examining Growth Metrics: The Future Outlook

For a company to ensure the sustainability of dividends, it must exhibit robust growth metrics. bebe stores Inc’s growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable. The company’s 3-year EPS growth rate, which showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run, is approximately 25.20% per year on average, a rate that outperforms approximately 68.25% of global competitors.


While bebe stores Inc has a commendable record of consistent dividend payments and a promising yield, the sustainability of its dividends is questionable due to a low payout ratio and profitability rank. The company’s growth metrics also raise concerns about future dividend sustainability. Therefore, investors should exercise caution and thoroughly analyze the company’s financial health before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.

This article first appeared on GuruFocus.