This Dividend Stock Has Made Some Big Changes. Could It Pay Off for Investors?
The VF in VF Corp's (NYSE: VFC) name stands for Vanity Fair, a once-iconic name in the clothing space. The stock was pretty iconic as well, having increased its dividend annually for decades. But the spin-off of Kontoor Brands (NYSE: KTB) in early 2019 cemented a major change of direction for the company. This just isn't the same dividend stock that it was before. Let's see why.
To be fair, VF Corp didn't suddenly switch gears when it jettisoned Kontoor Brands in 2019. That company owns clothing brands like Wrangler, Lee, and Rock & Republic, as well as the VF Outlet business. These are all tied to an older business model, in which the company made products that were largely sold through other retailers' stores.
It was a slow and consistent model, but one that was augmented over the years with the addition of hotter fashion brands. Timberland, Vans, and The North Face are good examples. The company's not done, either -- note the 2020 addition of Supreme to the list.
Source Fool.com
