When it comes to creating a durable business, having a wide moat is key to long-term success. Nowhere is this more important than in the fickle consumer discretionary sector. Key differentiation and consumer loyalty are hallmarks of a great discretionary name – and that’s been the case for our latest Best Consumer Discretionary Dividend Stocks List pick for decades. Investors can grab the stock before the stock goes ex-dividend on Friday, February 24, when it boosts its regular quarterly dividend by more than 10%!
You can check out the Best Consumer Discretionary Dividend Stocks List to explore all the stocks.
Our pick’s moat comes from its position as the largest retailer serving rural areas and those just outside of suburban communities. With a huge store footprint, distribution network and near monopoly on these regions of the country, our pick has delivered rising earnings and cash flow for years. An e-commerce failproof business model and focus on “need-it-now” items haven’t hurt either. And it’s managed to share that cash with investors, boosting its dividend for 10+ years straight. Its latest shareholder reward was a big 12% boost to its payout.
The best part is our pick still has room to grow. New consumer loyalty programs, omnichannel operations, as well as a focus on the fast-growing/higher-margined pet-care market have continued to increase revenues, decrease costs and boost profits.
All in all, our pick’s moat as the nation’s top rural retailer is wonderful for its investors and makes it a top-notch choice in the consumer discretionary sector.
