According to the 15-minute chart for The Buckle, the Moving Average Convergence Divergence (MACD) indicator has triggered a Death Cross, while the KDJ indicator has also triggered a Death Cross on September 18, 2025 at 11:15. This suggests that the stock price has the potential to continue falling, with momentum shifting towards the downside and further declines possible.
The board of The Buckle, Inc. (NYSE: BKE) has recently announced a dividend payment of $0.35 per share, set to be distributed on October 29, 2025. This dividend represents a yield of 6.3%, which is above the industry average. While this is attractive for income investors, it is essential to consider the broader context of the company's financial health and recent stock performance.
Buckle's stock price has surged by 44% in the last three months, which is a positive sign for shareholders. However, this significant increase has also led to a decrease in the dividend yield, which is now 6.3% compared to the previous 98% payout ratio. This high payout ratio could potentially force a dividend cut if the company encounters financial difficulties.
The company's earnings per share (EPS) are forecast to rise by 11.9% over the next year, which could sustain the dividend at a 91% payout ratio. However, historical data shows that Buckle has cut its dividend at least once in the last decade. The annual payment has grown at a rate of 6.5% over the past ten years, with the most recent fiscal year payment being $3.90. Despite this growth, the dividend's history of cuts warrants caution.
On a technical note, the 15-minute chart for Buckle has shown a Death Cross for both the Moving Average Convergence Divergence (MACD) and the KDJ indicators on September 18, 2025, at 11:15. This suggests a potential continuation of the stock price decline, with momentum shifting towards the downside. This technical signal should be considered alongside the company's financial health.
In conclusion, while Buckle's dividend is attractive, investors should be cautious due to the high payout ratio and the company's history of dividend cuts. The recent stock price increase and technical signals also indicate potential downside risk. Investors should consider these factors carefully before making investment decisions.
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