Bassett Furniture Industries, Inc.’s (BSET Quick QuoteBSET - Free Report) stock jumped 0.84% on Jul 14 after it announced a hike in dividend payout, maintaining its commitment to boost stockholders’ value.

This leading manufacturer and marketer of high-quality home furnishings announced a quarterly cash dividend hike of 14%. Bassett will pay out a quarterly dividend of 16 cents per share on Aug 26, 2022, to shareholders on record as of Aug 12. The company has a dividend payout of 27% and a dividend yield of 2.5%, based on the closing share price of $22.71 on Jul 14.

This move reflects the company’s sound and stable financial position and commitment to rewarding shareholders in this unprecedented economic condition.

Enhancement of Shareholder Value

Bassett has been actively managing cash flows, returning considerable free cash to investors through share repurchases and dividends. On Mar 11, BSET announced a special dividend of $1.50 per share of common stock. Again in July 2021, it increased its quarterly dividend to 14 cents per share, marking a 12% rise from the year-ago period’s levels.

The company’s chairman and CEO, Rob Spilman, noted that despite being in uncertain times with increased fuel costs, rampant inflation and the war in Ukraine, the housing and home furnishings demand remain relatively strong. The company expects to aggressively use operating cash flow and balance sheet in its business.

Apart from dividend distribution, Bassett regularly buys back its shares to boost shareholders’ value. This year, BSET raised the share repurchase authorization to $40 million. In 2021, it repurchased 204,714 shares of its stock for $5,566 under the share repurchase program.

Investors always prefer a return-generating stock. A high-dividend-yielding one is muchly coveted. It goes without saying that stockholders are always looking for companies with a track record of consistent and incremental dividend payments.

Shares of this Zacks Rank #3 (Hold) company have spiked 35.4% against the Zacks Furniture industry’s 22.3% fall this year.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Civeo Corp. (CVEO Quick QuoteCVEO - Free Report) , Choice Hotels International, Inc. (CHH Quick QuoteCHH - Free Report) and Marriott Vacations Worldwide Corp. (VAC Quick QuoteVAC - Free Report) , each carrying a Zacks Rank #2 (Buy).

Civeo provides hospitality services to the natural resources industry in Canada, Australia and the United States. The company has been witnessing higher billed rooms at the Canadian lodges, higher average daily rate, increased mobile asset activity from pipeline projects, higher occupancy at its Australian Civeo-owned villages, and improved activity in the U.S. offshore and wellsite business.

The Zacks Consensus Estimate for CVEO’s 2022 sales and EPS suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.

Choice Hotels is one of the largest hotel franchisors globally. As of Mar 31, 2022, CHH had 6,996 hotels open, representing nearly 577,714 rooms. Choice Hotels International operates across 40 countries and territories internationally and is present in 50 states domestically and the District of Columbia.

The Zacks Consensus Estimate for CHH’s 2022 sales and EPS suggests growth of 13.4% and 15.6%, respectively, from the year-ago period’s levels.

Marriott Vacations is a leading global vacation company, offers vacation ownership, exchange, rental, resort and property management services. The company focus on digitization initiatives bodes well. It is progressing with the technology required to link Marriott, Westin and Sheraton products into a single points-based offering.

The Zacks Consensus Estimate for VAC’s 2022 sales and EPS suggests growth of 19.9% and 126.8%, respectively, from the year-ago period’s levels.