Should You Buy Low on This Dividend Stock Yielding 1.4%?

Gildan Activewear Inc. (TSX:GIL)(NYSE:GIL) stock was down 5.04% in mid-afternoon trading on July 24.

Shares have dropped 8.6% in 2018 so far. Gildan reached an all-time high in the summer of 2015 but the stock has since been stagnant and hindered by volatility. Could it be a sneaky pick as we look ahead to the late summer and fall?

Gildan is set to release its second-quarter results on August 2. In the first quarter, the company reported that international sales rose 24% while total net sales fell 2.7% to $647.3 million.

Gildan reported softer sales in the hosiery and underwear category which was attributed to a shift in mass retailers moving to private label brands. The first quarter saw adjusted net income fall to $74.6 million or $0.34 per share, compared to $90.1 million or $0.39 per share in the prior year.

The company maintained its guidance for fiscal 2018 in the first quarter. It has forecast net sales growth in the low to mid-single-digit range while also projecting free cash flow of about $400 million.

The board of directors also approved a quarterly dividend of $0.112 per share representing a 1.4% dividend yield.

Gildan is well positioned to improve on its first-quarter dip in the second quarter and the rest of fiscal 2018. The stock is a solid buy ahead of its August Q2 2018 report.