Buckle: The Best Dividend Aristocrat by Far

Includes: BKE, KMB, MCD, MO, PG
by: Stephen Rosenman

Who should get the crown of dividend aristocrats? PG? MO? MCD? KMB?

I'm going to vote for an outsider that no one considers: the Buckle (NYSE:BKE), the teen retailer. It just announced its third special dividend in as many years. BKE will hand out $2.50 to shareholders this December, an amount in total of $115 million. In 2008, it passed out $2.00. In 2009, the company gave out $1.80. In addition, BKE pays out 20 cent a quarter dividend, which in itself represents a 2.1% yield.

Over the last 4 3/4 years, BKE has sent shareholders $372 million in dividends. This equals 25% of all of its gross profits. Remarkably, over the last 2 3/4 years, the company has given over 37% of its gross profits in dividends, quite a feat for a steadily growing company.

To put that in perspective, MO's dividends over the last 2 3/4 years equaled 26% of its gross profits, while MCD came to 9% and PG to 13%.

Disclosure: Long BKE