VF Corporation, VFC, is an apparel maker and distributor and a leader in jeans wear, sportswear, image wear and work wear. It has raised its dividend every year for the last 20 years.
Its brands include Lee, Wrangler, Jansport, Nautica, The North Face, Vans, Napaplin, Timberland, John Varvatos and Reef. The company has grown its profits and dividend at a 9-11% rate over the last 10 years earning a 15-18% return on equity.
It has raised its dividend every year for the last 20 years. Despite tough conditions in many of its product categories in 2009, management negotiated this period with barely a hiccup and set the company on a course to continue to grow earnings by:
(1) the strength of VFC’s brand management strategy provides a competitive advantage with regard to distribution as well as benefiting it tough economic periods,
(2) its long history of manufacturing and engineering expertise produces cost and service benefits,
(3) a successful acquisition program focusing on companies with global growth opportunities. The recent acquisitions of [a] Timberland will spur growth in its outdoor and sportswear businesses and [b] Rock and Republic Enterprises will increase its competitive position in premium jeans.
