Revealed on October twenty seventh, 2025 by Felix Martinez
Excessive-yield shares pay out dividends which might be considerably larger than the market common. For instance, the S&P 500’s present yield is simply ~1.2%.
Excessive-yield shares will be significantly useful in supplementing retirement revenue. A $120,000 funding in shares with a mean dividend yield of 5% creates a mean of $500 a month in dividends.
Hooker Furnishings Corp. (HOFT) is a part of our ‘Excessive Dividend 50’ collection, which covers the 50 highest-yielding shares within the Certain Evaluation Analysis Database.
We have now created a spreadsheet of shares (and carefully associated REITs, MLPs, and so forth.) with dividend yields of 5% or extra.
You possibly can obtain your free full listing of all securities with 5%+ yields (together with essential monetary metrics reminiscent of dividend yield and payout ratio) by clicking on the hyperlink beneath:
Subsequent on our listing of high-dividend shares to evaluate is Hooker Furnishings Corp. (HOFT).
Enterprise Overview
Hooker Furnishings is a designer, marketer, and importer of furnishings—together with casegoods, leather-based, and fabric-upholstered items—together with lighting, equipment, and residential décor for residential, hospitality, and contract markets. The corporate additionally produces premium customized leather-based and material furnishings domestically. As the biggest provider of case items and fabric within the U.S., Hooker reaches over 75% of retail furnishings distribution. Based in 1924 and headquartered in Martinsville, Virginia, the corporate presently has a market capitalization of $93 million.
On September 11, 2025, Hooker Furnishings reported Q2 fiscal 2026 outcomes (fiscal 12 months ends January 2026), displaying a 14% decline in web gross sales in comparison with final 12 months, pushed by weak demand and pre-pandemic residence gross sales ranges. Excessive rates of interest and elevated residence costs have pressured the house furnishings sector over the previous two years. Regardless of cost-cutting measures, loss per share widened from $0.11 to $0.31, lacking analysts’ estimates by $0.19. This marked the seventh consecutive quarter of earnings misses. Consequently, our EPS forecast for fiscal 2026 has been decreased from $0.50 to $0.25.
Administration cited weak new residence gross sales and chronic inflation as key challenges. The corporate has reported weak gross sales and earnings for 9 straight quarters. Assuming no vital tariffs are imposed on key buying and selling companions, Hooker Furnishings might enhance efficiency subsequent 12 months. The inventory has fallen 22% this 12 months as a result of these weak outcomes.
Supply: Investor Relations
Development Prospects
Hooker Furnishings has skilled a extremely risky enterprise efficiency, failing to develop its earnings over the previous decade. The corporate posted regular earnings progress till 2020 however was severely impacted by the coronavirus pandemic. Following a partial restoration, it confronted one other setback from surging inflation, which prompted the Federal Reserve to lift rates of interest to a 23-year excessive. Mixed with elevated residence costs, these components have constrained demand for brand new properties, creating a big headwind for Hooker’s enterprise.
Trying forward, the outlook for Hooker Furnishings seems extra favorable. Inflation is predicted to reasonable, and the Fed is more likely to decrease rates of interest within the coming years. If these tendencies materialize, demand for brand new properties ought to strengthen, supporting a restoration in each gross sales and earnings for the corporate.
Given the enterprise’s historic volatility, a conservative strategy to progress expectations is warranted. However, with this 12 months’s exceptionally low comparability base, we undertaking a mean annual EPS progress of 32% over the following 5 years.
Aggressive Benefits & Recession Efficiency
Hooker Furnishings’ aggressive benefit lies in its scale, model recognition, and in depth distribution community. As the biggest provider of case items and fabric within the U.S., the corporate reaches over 75% of retail furnishings channels. Its mixture of imported and domestically manufactured furnishings, together with premium customized leather-based and material items, permits Hooker to serve a variety of residential, hospitality, and contract markets.
This diversification, together with a long time of design experience, positions the corporate to take care of a robust market presence regardless of sector volatility.
When it comes to recession efficiency, Hooker Furnishings has traditionally confronted challenges throughout financial downturns as a result of its reliance on new-home gross sales and discretionary spending. Whereas the corporate skilled constant progress earlier than 2020, the COVID-19 pandemic and subsequent inflationary pressures highlighted its vulnerability to macroeconomic shocks.
However, Hooker’s established model, broad distribution, and price administration initiatives present some resilience, permitting it to navigate recessions higher than smaller, much less diversified opponents.
Dividend Evaluation
Hooker Furnishings gives a comparatively engaging dividend yield of 10.4%, reflecting its dedication to returning capital to shareholders regardless of current earnings volatility.
Whereas the corporate has confronted a number of quarters of weak efficiency, its capability to maintain dividends is supported by value administration measures and a diversified product portfolio. Buyers ought to view the dividend as a robust revenue part, although potential fluctuations in earnings might have an effect on its long-term stability.
Nonetheless, the dividend is susceptible to a lower this 12 months, as the corporate has an over-100 % payout ratio. The corporate is predicted to earn $0.25 per share this 12 months whereas paying a dividend of $0.92 per share.
Closing Ideas
Hooker Furnishings has declined by over 36% this 12 months as a result of results of excessive rates of interest and inflation. Whereas a restoration is probably going over the approaching years, buyers ought to count on a gradual turnaround. Nonetheless, the dividend is susceptible to a lower this 12 months due to the excessive payout.
Excessive-Yield Particular person Safety Analysis
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