MINNEAPOLIS - Winmark Corporation (NASDAQ:WINA), known for its focus on sustainability and franchising resale businesses, has announced an increase in its regular quarterly cash dividend for shareholders. The company's Board of Directors approved the dividend hike to $0.90 per share, up $0.10 from the previous rate.
The upcoming dividend is scheduled to be paid on June 3, 2024, to shareholders who are on record by the close of business on May 15, 2024. It's important to note that the issuance of any future dividends will remain at the discretion of the Board of Directors.
Winmark, also known as "the Resale Company," is prominent in the franchising industry, providing guidance to entrepreneurs who operate its various award-winning resale brands. These include Plato's Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®.
As of March 30, 2024, Winmark boasted 1,327 active franchises with more than 2,800 territories available for development. Additionally, the company has awarded 73 new franchises that are slated to open in the future.
The information in this article is based on a press release.
InvestingPro Insights
Winmark Corporation's recent dividend increase is a testament to its financial resilience and commitment to shareholder returns. With a market capitalization of $1.25 billion and a robust gross profit margin of 94.16% over the last twelve months as of Q4 2023, the company is showcasing its efficiency in generating earnings relative to its revenue. This is particularly impressive in the retail sector, where margins can often be thin due to competitive pricing pressures.
Additionally, Winmark has demonstrated the ability to sustain its dividend payments for an impressive 15 consecutive years, emphasizing its reliability as an income-generating investment. This aligns with the InvestingPro Tip that Winmark has maintained steady cash flows, which can sufficiently cover interest payments, providing further assurance to investors about the company's financial health.
While the company trades at a high earnings multiple, with a P/E ratio of 31.11, this reflects the market's valuation of the company's consistent profitability and growth prospects. Investors looking to delve deeper into Winmark's financial metrics and gain more InvestingPro Tips can explore further at Investing.com/pro/WINA. There are 11 additional InvestingPro Tips available, which can provide a comprehensive analysis for those considering an investment in Winmark. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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