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DUBUQUE, Iowa - Flexsteel Industries, Inc. (NASDAQ:FLXS), a prominent furniture manufacturer, has announced an increase in its quarterly dividend, continuing its long-standing tradition of shareholder payouts. The company's Board of Directors declared a dividend of $0.17 per share, marking a significant increase of over 13% from the previous quarter. This dividend is scheduled to be paid on October 7, 2024, to shareholders on record as of September 25, 2024.
The announcement underscores Flexsteel's consistent financial practice, as it has been paying cash dividends on its common stock annually since 1938. The upcoming dividend will be the 331st consecutive quarterly cash dividend issued by the company.
Flexsteel, known for its wide range of residential furniture products, including upholstered furniture featuring a unique steel drop-in seat spring, has established a strong presence in the United States. The company reaches its customers through various channels, including e-commerce and a direct sales force.
This dividend increase comes as a testament to Flexsteel's financial health and commitment to returning value to its shareholders. The company's ability to maintain and grow its dividend over such an extended period is notable in the industry.
The information regarding this dividend increase is based on a press release statement from Flexsteel Industries, Inc.
In other recent news, Flexsteel Industries has reported notable growth in the fourth quarter of the 2024 fiscal year, despite industry challenges. The company's sales increased by 4.7%, and it achieved a 5.6% adjusted operating margin. In the face of weak demand conditions, Flexsteel outperformed the industry with an annual sales growth of 4.8%.
Looking forward, Flexsteel has set its sales guidance for the first quarter of the 2025 fiscal year between $100 million and $105 million. The company aims to improve gross margins and manage SG&A costs, all while investing in growth initiatives. Flexsteel also has a projected effective tax rate of 30-32% for the 2025 fiscal year.
Despite challenges in e-commerce sales and pressure on wages in distribution centers and Mexico operations, Flexsteel remains confident in its growth strategies. These strategies include focusing on core markets, expanding into new markets, and investing in consumer insights, innovation, and marketing. The company also plans to reduce debt and fund capital expenditures.
InvestingPro Insights
Flexsteel Industries, Inc. (NASDAQ:FLXS) recently announced a boost in its quarterly dividend, reflecting a strong commitment to shareholder returns. This decision aligns with the company's impressive track record of maintaining dividend payments for 54 consecutive years, as noted in one of the InvestingPro Tips. Such a history of consistent payouts is a testament to Flexsteel's financial resilience and operational strategy, which has evidently been effective over the long term.
InvestingPro Data reveals that Flexsteel has a market capitalization of $205.8 million and a Price to Earnings (P/E) ratio of 19.25, which adjusts to 20.06 when considering the last twelve months as of Q4 2024. The company's revenue growth for the same period stands at 4.84%, underscoring a steady performance in its financial results.
Flexsteel's commitment to shareholder returns is further highlighted by its high shareholder yield, another key InvestingPro Tip. This, coupled with a strong return over the last year, where the company's one-year price total return is an impressive 102.22%, positions Flexsteel as a potentially attractive option for investors seeking both growth and income. Moreover, the company's liquid assets exceed its short-term obligations, providing it with a solid financial footing to sustain its dividend payments.
For those interested in a more comprehensive analysis, InvestingPro offers additional insights and tips on Flexsteel Industries, Inc., which can be explored at the dedicated InvestingPro page for FLXS.
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