Analysis of Williams Sonoma's Dividend and Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy WSM?
Source: NASDAQ.COM
- Dividend Yield Expectation: The latest dividend expectation for Williams Sonoma Inc is a 1.3% annualized yield, although dividend amounts are typically influenced by company profitability fluctuations, historical dividend charts can provide investors with a reference point.
- Historical Volatility Analysis: Based on the last 250 trading days' closing prices, Williams Sonoma's annualized volatility is calculated at 42%, indicating significant price fluctuations, which necessitates careful risk assessment by investors.
- Options Strategy Consideration: When contemplating selling a covered call at a $300 strike price for January 2028, investors must weigh potential rewards against the loss of upside beyond $300, ensuring a reasonable risk-reward balance.
- Options Market Insights: While most options expire worthless, combining fundamental analysis with historical volatility allows investors to better assess the potential value and risks of options trading.
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Analyst Views on WSM
Wall Street analysts forecast WSM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WSM is 203.67 USD with a low forecast of 175.00 USD and a high forecast of 230.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 212.490
Low
175.00
Averages
203.67
High
230.00
Current: 212.490
Low
175.00
Averages
203.67
High
230.00
About WSM
Williams-Sonoma, Inc. is an omnichannel specialty retailer of products for the home. Its products, representing distinct merchandise strategies, such as Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow are marketed through e-commerce Websites, retail stores and direct-mail catalogs. These brands are also part of The Key Rewards, its loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products offer everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a vast library of cookbooks. It operates in the United States, Puerto Rico, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Williams Sonoma's Dividend and Volatility
- Dividend Yield Expectation: The latest dividend expectation for Williams Sonoma Inc is a 1.3% annualized yield, although dividend amounts are typically influenced by company profitability fluctuations, historical dividend charts can provide investors with a reference point.
- Historical Volatility Analysis: Based on the last 250 trading days' closing prices, Williams Sonoma's annualized volatility is calculated at 42%, indicating significant price fluctuations, which necessitates careful risk assessment by investors.
- Options Strategy Consideration: When contemplating selling a covered call at a $300 strike price for January 2028, investors must weigh potential rewards against the loss of upside beyond $300, ensuring a reasonable risk-reward balance.
- Options Market Insights: While most options expire worthless, combining fundamental analysis with historical volatility allows investors to better assess the potential value and risks of options trading.
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Pink Chicken Collaborates with West Elm for Home Collection
- Collaboration Launch: West Elm has partnered with children's clothing brand Pink Chicken to introduce a home collection themed around spring and Easter, aiming to bring warmth and whimsy to children's spaces while expanding brand influence.
- Product Diversity: The collection features items such as floral quilts, bunny-shaped pillows, and woven Easter baskets, priced between $22 and $79, catering to modern families' demands for quality and style, thereby enhancing market competitiveness.
- Brand Philosophy Alignment: West Elm President Day Kornbluth noted that this collaboration merges Pink Chicken's patterns with modern home design, reflecting a shared commitment to quality and style, which enhances consumer brand experience.
- Social Media Engagement: Customers are invited to join the conversation about the collaboration on social media, further strengthening the interaction between the brand and its customers, which boosts brand loyalty and market awareness.
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Williams-Sonoma Positioned to Benefit from US-India Trade Deal
- Trade Deal Progress: Indian Petroleum Minister stated that the US-India trade deal is in very advanced stages, which could positively impact retail companies like Williams-Sonoma (WSM), particularly in terms of exports.
- Tariff Reduction Potential: Analysts believe that if a deal is reached, WSM's effective tariff rate could decrease from 29% to 22%, representing a 25 basis point reduction, significantly lowering costs and enhancing competitiveness.
- Market Performance Recovery: WSM shares rose 0.5% in premarket trading on Tuesday and have increased over 14% year-to-date, reflecting market confidence in its future growth prospects.
- Gross Margin Pressure: Although tariff pressures are expected to impact WSM's gross margins in the coming quarters, the anticipated deal could alleviate some of these pressures by 2026, aiding the company's profitability recovery.
See More
Williams-Sonoma Officer Plans to Sell $7.26 Million in Common Stock via Form 144
Stock Sale Announcement: Officer Laura Albers plans to sell 35,000 shares of its common stock on January 15, with a total market value of approximately $7.26 million.
Reduction in Shareholding: Laura Albers has reduced her shareholding in Williams-Sonoma by 30,000 shares since November 25, 2025, with a total value of around $5.39 million.
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Analysts Upgrade Earnings Outlook: 10 Consumer Giants Rated A+
- Earnings Upgrades: As earnings season approaches, analysts have positively revised earnings expectations for consumer giants like Ralph Lauren, Ross Stores, and Sony Group, all receiving A+ ratings, indicating growing market confidence.
- Increased Market Confidence: Dillard’s, Carnival, and Somnigroup International also received A ratings, suggesting these companies demonstrate strong profitability in the current economic environment, potentially attracting more investor interest.
- Investor Focus: Trip.com Group and Williams-Sonoma also earned A ratings, reflecting analysts' optimistic outlook on their future performance, which may drive their stock prices up post-earnings release.
- Consumer Sector Outlook: Amer Sports and Five Below received A ratings, highlighting the potential of the consumer sector in the economic recovery, prompting investors to monitor these companies' future performance.
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A Change in Consumer Spending Is Approaching: 11 Stocks Set to Gain.
- Shift in Consumer Spending: People are expected to move their spending habits from services and experiences to physical goods.
- Focus on Physical Goods: There will be an increased emphasis on purchasing items such as houses and furniture.
See More
Analysis of Williams Sonoma's Dividend and Volatility
- Dividend Yield Expectation: The latest dividend expectation for Williams Sonoma Inc is a 1.3% annualized yield, although dividend amounts are typically influenced by company profitability fluctuations, historical dividend charts can provide investors with a reference point.
- Historical Volatility Analysis: Based on the last 250 trading days' closing prices, Williams Sonoma's annualized volatility is calculated at 42%, indicating significant price fluctuations, which necessitates careful risk assessment by investors.
- Options Strategy Consideration: When contemplating selling a covered call at a $300 strike price for January 2028, investors must weigh potential rewards against the loss of upside beyond $300, ensuring a reasonable risk-reward balance.
- Options Market Insights: While most options expire worthless, combining fundamental analysis with historical volatility allows investors to better assess the potential value and risks of options trading.
See More
Pink Chicken Collaborates with West Elm for Home Collection
- Collaboration Launch: West Elm has partnered with children's clothing brand Pink Chicken to introduce a home collection themed around spring and Easter, aiming to bring warmth and whimsy to children's spaces while expanding brand influence.
- Product Diversity: The collection features items such as floral quilts, bunny-shaped pillows, and woven Easter baskets, priced between $22 and $79, catering to modern families' demands for quality and style, thereby enhancing market competitiveness.
- Brand Philosophy Alignment: West Elm President Day Kornbluth noted that this collaboration merges Pink Chicken's patterns with modern home design, reflecting a shared commitment to quality and style, which enhances consumer brand experience.
- Social Media Engagement: Customers are invited to join the conversation about the collaboration on social media, further strengthening the interaction between the brand and its customers, which boosts brand loyalty and market awareness.
See More
Williams-Sonoma Positioned to Benefit from US-India Trade Deal
- Trade Deal Progress: Indian Petroleum Minister stated that the US-India trade deal is in very advanced stages, which could positively impact retail companies like Williams-Sonoma (WSM), particularly in terms of exports.
- Tariff Reduction Potential: Analysts believe that if a deal is reached, WSM's effective tariff rate could decrease from 29% to 22%, representing a 25 basis point reduction, significantly lowering costs and enhancing competitiveness.
- Market Performance Recovery: WSM shares rose 0.5% in premarket trading on Tuesday and have increased over 14% year-to-date, reflecting market confidence in its future growth prospects.
- Gross Margin Pressure: Although tariff pressures are expected to impact WSM's gross margins in the coming quarters, the anticipated deal could alleviate some of these pressures by 2026, aiding the company's profitability recovery.
See More
Williams-Sonoma Officer Plans to Sell $7.26 Million in Common Stock via Form 144
Stock Sale Announcement: Officer Laura Albers plans to sell 35,000 shares of its common stock on January 15, with a total market value of approximately $7.26 million.
Reduction in Shareholding: Laura Albers has reduced her shareholding in Williams-Sonoma by 30,000 shares since November 25, 2025, with a total value of around $5.39 million.
See More
Analysts Upgrade Earnings Outlook: 10 Consumer Giants Rated A+
- Earnings Upgrades: As earnings season approaches, analysts have positively revised earnings expectations for consumer giants like Ralph Lauren, Ross Stores, and Sony Group, all receiving A+ ratings, indicating growing market confidence.
- Increased Market Confidence: Dillard’s, Carnival, and Somnigroup International also received A ratings, suggesting these companies demonstrate strong profitability in the current economic environment, potentially attracting more investor interest.
- Investor Focus: Trip.com Group and Williams-Sonoma also earned A ratings, reflecting analysts' optimistic outlook on their future performance, which may drive their stock prices up post-earnings release.
- Consumer Sector Outlook: Amer Sports and Five Below received A ratings, highlighting the potential of the consumer sector in the economic recovery, prompting investors to monitor these companies' future performance.
See More
A Change in Consumer Spending Is Approaching: 11 Stocks Set to Gain.
- Shift in Consumer Spending: People are expected to move their spending habits from services and experiences to physical goods.
- Focus on Physical Goods: There will be an increased emphasis on purchasing items such as houses and furniture.
See More
