It’s a good time to buy more of both

Article Excerpt

On May 22, 2019, apparel maker VF Corp. spun off its Lee and Wrangler jeans business as a separately traded company called Kontoor Brands. Investors received one share in Kontoor for every seven VF shares they held. So far, the split has produced mixed results: VF is down 45%, but Kontoor is up 19%. Even so, we feel both stocks are poised to move higher in the next few years, particularly as shoppers return to retail stores following COVID-19 lockdowns. Both companies also recently raised their dividends, which is a sign that they expect better earnings in the next few years. VF CORP. $46 is a buy. The company (New York symbol VFC; Consumer sector; Shares outstanding: 388.3 million; Market cap: $17.9 billion; Dividend yield: 4.3%; Takeover Target Rating: Medium; www.vfc.com) is one of the world’s largest apparel suppliers and a leader in the outdoor, sportswear, and workwear markets. Its main brands include Vans, The North Face, Timberland and Dickies. Sales through mass retail chains and specialty…

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