American Eagle’s (AEO) Dividend Keeps Shining Despite a Modest Share Price

American Eagle Outfitters, Inc. (NYSE:AEO) is included among the 13 Best Dividend Stocks to Buy Under $20.

A close-up of a customer trying on a stylish Aerie item, smiling with satisfaction.

American Eagle Outfitters, Inc. (NYSE:AEO) is emerging as a standout choice in the consumer discretionary sector, particularly as indications suggest a potential resurgence in consumer spending. Although much of the spotlight has been on faster-growing retailers like Abercrombie & Fitch, AEO represents a steadier alternative — a well-managed, expanding apparel company currently trading near the lower end of its typical valuation range.

American Eagle Outfitters, Inc. (NYSE:AEO) reported mixed earnings in the first quarter of 2025. The company’s revenue came in at $1.09 billion, down 4.7% on a YoY basis. Comparable sales at Aerie dropped by 4%, while American Eagle saw a 2% decline. Gross profit totaled $322 million, with the gross margin falling to 29.6% from 40.6% the previous year. Selling, general, and administrative expenses increased by 2% to $339 million, resulting in a 190 basis point decline in efficiency as a percentage of sales. While compensation and incentive costs decreased, higher advertising expenses offset those savings.

American Eagle Outfitters, Inc. (NYSE:AEO) also posted a solid cash position. The company ended the quarter with over $87.5 million in cash and cash equivalents. During the quarter, it also returned $22 million to shareholders through dividends. The company currently offers a quarterly dividend of $0.125 per share and has a dividend yield of 5.04%, as of July 21.

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Disclosure: None.