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V.F. Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of branded apparel and related products in the United States and internationally. It offers jeanswear, outdoor apparel, imagewear, and sportswear

It is a dividend aristocrat as well as a component of the S&P 500 index. It has been increasing its dividends for the past 34 consecutive years. From 1998 up until 2007 this dividend growth stock has delivered an annual average total return of 7.10 % to its shareholders.

At the same time company has managed to deliver a 6.40% average annual increase in its EPS since 1998.

The ROE has remained in the 16-21% range over the past 10 years with the exception of the 2001 spike below 7%.

Annual dividend payments have increased over the past 10 years by an average of 11.20% annually, which is much higher than the growth in EPS. An 11% growth in dividends translates into the dividend payment doubling almost every six and a half years. If we look at historical data, going as far back as 1986, VFC has actually managed to double its dividend payment every seven years on average. Much of the growth in dividends came from a 90% jump in payments to shareholders in 2006.

If we invested $100,000 in VFC on December 31, 1997 we would have bought 2445 shares (Adjusted for two 2:1 stock splits). In March 1998 your quarterly dividend income would have been $489. If you kept reinvesting the dividends though instead of spending them, your quarterly dividend income would have risen to $1804 by November 2007. For a period of 10 years, your quarterly dividend income has increased by 190 %. If you reinvested it though, your quarterly dividend income would have increased by 269%.

The dividend payout has remained below 50% for the majority of our study period, with the exception of a short spike above 75% in 2001. A lower payout is always a plus, since it leaves room for consistent dividend growth minimizing the impact of short-term fluctuations in earnings.

I think that VFC is attractively valued with its low price/earnings multiple of 13, low DPR and above average dividend yield of 3.10%.

Disclosure: I own shares of VFC

Source: Dividend Analysis: V.F. Corp.