Hanesbrands Q3 Earnings: 8.5% Dividend Is Compelling Despite Ongoing Headwinds

Nov. 14, 2022 11:38 PM ETHanesbrands Inc. (HBI) StockHBI8 Comments
Building Benjamins
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Summary

  • 8.5% forward dividend yield, with a ~37% payout ratio, the highest among peers.
  • Valuation, as measured by, price to earnings remains better than sector.
  • Consolidation of operations, offloading unprofitable brands, and moving distribution to a more centralized model.
  • Increasing inventory and repositioning with recession-resistant SKUs.

I"m gonna look so fabulous in these

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Investment Thesis

Hanesbrands (NYSE:HBI) is the #1 brand in North America for innerwear. Through a large and diverse distribution system, it produces over two billion units annually and has added quickly growing sectors like activewear.

HBI

This article was written by

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BuildingBenjamins is a free stock picking and market commentary investment newsletter. Building Benjamins is the DBA (doing businesses as) publishing entity for Tradition Investment Management, LLC, a registered investment adviser. Benjamin Halliburton, our founder, also founded Tradition Capital Management in 2000 and was named “PSN Manager of the Decade” for All-Cap in the 2000s and “PSN Manager of the Decade” for Dividend Value in the 2010s. Since starting his investment career at Merrill Lynch in 1986, Ben has been continuously involved in investing. He managed money while earning a Master of Business Administration (MBA) with a focus on finance from Duke’s Fuqua School of Business in 1990, where he was distinguished as a Fuqua Scholar. In 1994, he earned the Chartered Financial Analyst designation. He was the top-performing portfolio manager at his firm, Brundage, Story and Rose, where his “Disciplined Growth Strategy” outperformed the S&P500 in the 1990’s bull market. Ben was the youngest partner at his firm and was called “the best investor I have ever met” by one of the senior managing partners.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of HBI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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