Ralph Lauren Raises Quarterly Dividend 9.5% to $1.00

Ralph Lauren Corporation raised its quarterly dividend 9.5% to $1.00 a share from $0.913. The next ex-dividend date is September 25, 2026, and the new rate equates to an annual dividend of $4.00 a share.

Why the dividend changed

Ralph Lauren did not give a separate explanation for the increase. It announced the decision alongside fiscal 2026 results that showed stronger sales, margins and balance-sheet capacity. Full-year revenue rose 15% to $8.1 billion on a reported basis, while adjusted operating margin expanded to 16.0%. The company finished the year with $2.1 billion in cash and short-term investments and $1.2 billion of debt. It also repurchased about $500 million of Class A stock during the year. Ralph Lauren’s fiscal 2026 results

The operating gains were broad. Full-year revenue increased 9% in North America, 17% in Europe and 23% in Asia on a reported basis. Management attributed margin improvement to geographic, channel and product mix, higher average unit retail prices, increased full-price selling and lower cotton costs. Those factors more than offset higher U.S. tariffs and other product costs in the fourth quarter. Chief Executive Patrice Louvet said the company exceeded its fiscal commitments with balanced contributions across categories, regions and channels. Ralph Lauren’s fiscal 2026 results

Results after the increase reinforced that context. First-quarter fiscal 2027 revenue rose 14% to $2.0 billion, adjusted operating margin reached 18.7%, and inventory fell 5% from a year earlier. Ralph Lauren ended the quarter with $1.9 billion in cash and short-term investments after repurchasing about $250 million of stock. The company also raised its fiscal 2027 constant-currency revenue outlook to growth centered around 5% to 6%. Ralph Lauren’s first-quarter fiscal 2027 results

Dividend track record

The increase extends Ralph Lauren’s dividend-growth streak to 4 consecutive years. Recent payments show a pattern of annual step-ups rather than irregular changes: the quarterly rate was $0.825 for the September 27, 2024 and December 27, 2024 ex-dividend dates, rose to $0.913 beginning with the March 28, 2025 payment cycle, and reached $1.00 for the June 26, 2026 ex-dividend date.

Annual totals show the recovery and subsequent progression more clearly. Ralph Lauren made one payment totaling $0.69 in 2020 and three totaling $2.06 in 2021. Four quarterly payments totaled $2.94 in 2022, $3.00 in 2023, $3.23 in 2024 and $3.56 in 2025. The 2025 total was up 10.5% from 2024. The current $4.00 annual rate places the dividend above the most recent completed-year total.

Ralph Lauren says it has generally maintained a regular quarterly dividend program since 2003. Future declarations remain subject to board approval and depend on operating results, cash requirements, financial condition and economic conditions. Ralph Lauren’s first-quarter fiscal 2027 Form 10-Q

Is the dividend covered?

The dividend consumes 24% of earnings. That means less than one-quarter of reported earnings is being distributed through the regular dividend, leaving a substantial accounting-earnings cushion for reinvestment, debt service, repurchases and operating volatility.

SmarterDividends rates the dividend A with a safety score of 87. The A grade denotes a very safe dividend, defined as a score of 80-100. The low earnings payout ratio supports that assessment, although continued coverage will still depend on Ralph Lauren maintaining profitability and cash generation in a cyclical apparel market.

Yield and valuation

Ralph Lauren’s forward yield is 1.19%, below the Consumer Cyclical sector median of 2.66%. The stock therefore offers less current dividend income than the sector median despite the higher quarterly rate. At $400.00 of annual income per 100 shares, its income profile remains more dependent on continued dividend growth than on a high starting yield.

The shares trade at $350.89 and have produced a 4.8% gain over the past year. SmarterDividends estimates fair value at $397.21, assigns an undervalued verdict and shows 19% upside to fair value. The company’s market value is $20.9 billion.

What to watch

The immediate date for income investors is September 25, 2026, the next ex-dividend date. Investors must own the shares before that date to qualify for the associated distribution under standard market settlement conventions.

The next operating update will be important for assessing whether the conditions surrounding the increase remain intact. Ralph Lauren’s current fiscal 2027 outlook calls for constant-currency revenue growth centered around 5% to 6% and operating-margin expansion of 60 to 80 basis points. Management identified tariffs, inflation, consumer-spending pressure, supply-chain disruption and currency volatility as continuing variables. Ralph Lauren’s first-quarter fiscal 2027 results

Capital allocation also bears watching. Ralph Lauren is directing funds to dividends, repurchases, store development, digital capabilities and technology. The balance among those uses, together with inventory control and full-price demand, will determine the resources available for future dividend decisions.