Dividend Growth Stock Overview: Nu Skin Enterprises

Nu Skin Enterprises manufactures and distributes beauty and nutritional
products worldwide.
Photo: Flickr.com/Shannon Kringen

About Nu Skin Enterprises

Nu Skin Enterprises manufactures and distributes beauty and wellness products worldwide. The company sells its products primarily through individual sellers on a commission basis. Those individual sellers also have the opportunity to generate additional income by recruiting other individuals into their sales channel. Nu Skin is headquartered in Utah and employs nearly 27,000 people, including 22,000 in China.

The company generates more than 90% of its revenue from outside the United States, mostly in the Asia-Pacific region. Mainland China generates roughly 25% of Nu Skin’s annual revenues. While the company does utilize direct sellers, restrictions and licensing requirements on direct selling in China limit the number of individuals that sell products this way. Instead, Nu Skin emphasizes selling through retail stores and the company website as well as independent 3rd party retailers.

Nu Skin has two primary lines of business: Beauty & Personal Care products, sold mostly under the Nu Skin brand, and Nutritional products, which are sold primarily under the Pharmanex brand. The Nu Skin branded products generate about 60% of Nu Skin’s total revenues, while the remaining 40% is generated by the sale of the Pharmanex nutritional supplements.

Nu Skin has a share repurchase program, which was reauthorized in October 2015 to a level of $500 million in repurchases. At current prices, this represents about 25% of the Nu Skin’s total outstanding shares.

The company trades under the ticker symbol NUS.

Nu Skin Enterprises’ Dividend and Stock Split History

Nu Skin Enterprises Dividend History

Nu Skin Enterprises has slowed its growth since 2014.

Nu Skin Enterprises came public in 1996 and has grown dividends since 2001. The company announces its annual dividend increases in early February, with the stock going ex-dividend in late February. The company’s most recent dividend increase was a 1.4% increase to an annualized $1.42, announced in February 2016.

Over the last two years, Nu Skin has grown its annual dividend by 2 cents a year – less than 1.5% each year. Despite this, the company has an excellent longer-term dividend growth record. Over the last 5 years, Nu Skin has compounded its dividend at 19.20% a year, and at 13.51% over the last 10 years. Since beginning its annual dividend growth in 2001, the company has compounded its dividend an average of 13.96% a year.

Nu Skin has not split its stock in its history.

Over the 5 years ending on December 31, 2015, Nu Skin Enterprises stock appreciated at an annualized rate of 6.81%, from a split-adjusted $27.26 to $37.89. This significantly underperformed the 10.20% compounded return of the S&P 500 index over the same period.

Nu Skin Enterprises’ Direct Purchase and Dividend Reinvestment Plans

Nu Skin Enterprises does not have a direct purchase or dividend reinvestment plan. In order to invest in Nu Skin stock, you’ll need to purchase it through a broker. Most brokers will allow you to reinvest dividends without any fee. Ask your broker for more information on how to set this up if you are interested.

Helpful Links

Nu Skin Enterprises’ Investor Relations Website

Current quote and financial summary for Nu Skin Enterprises (finviz.com)

 

Share this post:

Recent Posts

Comments are closed.