While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Prior to this announcement, Kontoor Brands' dividend was only 43% of earnings, however it was paying out 178% of free cash flows. While the company may be more focused on returning cash to shareholders than growing the business at this time, we think that a cash payout ratio this high might expose the dividend to being cut if the business ran into some challenges.