Haverty Furniture Companies: A Top Dividend Stock with High Yield

In the ever-changing landscape of investment opportunities, finding a stock that offers a high dividend yield while maintaining financial stability can be a challenge. Haverty Furniture Companies, Inc. (HVT) stands out as a top dividend stock, offering a yield that surpasses the average rental yield in the United States. This makes it an attractive option for income-focused investors looking to diversify their portfolios.

Haverty Furniture Companies, founded in 1885, is a specialty retailer of residential furniture and accessories in the United States. The company operates under the Havertys brand name and offers a range of furniture merchandise, custom upholstery products, and mattress product lines under well-known brands such as Tempur-Pedic, Serta, Sealy, Beautyrest, and Stearns and Foster. With 120 stores and a strong online presence, Haverty Furniture Companies has established itself as a leader in the home improvement retail sector.

One of the key financial metrics that make Haverty Furniture Companies a top dividend stock is its dividend yield. As of March 24, 2025, the company has a dividend yield of 5.42%, which is significantly higher than the Consumer Cyclical sector average of 2.43%. This high yield makes it an attractive option for income-focused investors. For comparison, La-Z-Boy Inc. (LZB) has a dividend yield of 1.95%, and Williams Sonoma Inc. (WSM) has a dividend yield of 1.66%.

Another important metric is the dividend payout ratio. Haverty Furniture Companies has a payout ratio of 75.2%, which is higher than the sector average of 38.9%. This indicates that the company is distributing a significant portion of its earnings as dividends. However, it is important to note that a high payout ratio can sometimes indicate that the company may have less room to increase dividends in the future or may be at risk if earnings decline.

Haverty Furniture Companies has shown consistent dividend growth. The annualized dividend per share (DPS) marks an increase of 7% since one year ago. This growth, combined with the stock price decrease of 22% from a year ago, has resulted in a 37% increase in the dividend yield. The company has been paying dividends for the last 29 years, demonstrating a strong commitment to returning value to shareholders. The company has issued four quarterly dividends in the last twelve months, with the most recent dividend payment of $0.32 per share made to shareholders on record before Aug 26, 2024.

In terms of financial performance, Haverty Furniture Companies reported revenue of $722.90 million in 2024, a decrease of -16.15% compared to the previous year's $862.13 million. Earnings were $19.96 million, a decrease of -64.57%. Despite these declines, the company's dividend payout remains robust, indicating a focus on maintaining shareholder returns.

In comparison to other companies in the home improvement retail sector, Haverty Furniture Companies' high dividend yield and consistent dividend growth make it a standout option. However, investors should also consider the company's high payout ratio and recent declines in revenue and earnings when making investment decisions.

In conclusion, Haverty Furniture Companies, Inc. (HVT) is a top dividend stock that offers a high yield, consistent dividend growth, and a strong commitment to returning value to shareholders. While the company has faced recent declines in revenue and earnings, its robust dividend payout and long history of paying dividends make it an attractive option for income-focused investors. As always, it is important to conduct thorough research and consider all factors before making any investment decisions.