Dividend.com has added a retail giant to the Best Dividend Stocks List and removed a real estate company from the list.
Check the headlines in the news these days and you’ll see just how bad it is for the retail sector: Dying malls, bankruptcies and store closures are now pretty commonplace among retail names. A variety of once-proud retailers, stores and shopping malls has continued to struggle under the weight of nimbler online rivals – but the headlines don’t tell the whole story. Yes, many retailers are dying as online shopping wins the day. However, for those traditional retailers making the transition to “bricks & clicks” and omnichannel retailing, this new age of sales is golden.
Case in point – our new Best Dividend Stocks List pick in the sector.
Our pick was once one of those dying retailers and often seen as a “showroom” for its online rivals. However, thanks to a successful turnaround plan, our pick is now thriving in the current environment. Better inventory management, an addition of services and the correct use of omnichannel operations have made it a real contender in the current retail environment. So much so that our pick has seen consistent sales and profit growth since its turnaround was enacted.
And the proof is in the pudding. Our new pick was recently able to boost its dividend by over 10%, thanks to its booming results.
The best part is that our pick continues to work hard to make its turnaround even better. Recently, after announcing a new phase, our pick has more avenues to pursue to juice profits and revenues even further. In the end, our pick could be one of the real winners in the shift in consumer behavior.
To summarize, here are five reasons why you should own this stock:
1. Turnaround has made it into one of the best omnichannel retailers, with online and store sales beating estimates for the last four-quarters straight.
2. It’s on track to pull in nearly $25 billion in sales this year – a 4.3% CAGR over the last two years.
3. Smartly added higher-margined services and advice to its stable of products to drive additional sales.
4. Plenty of avenues to enhance growth in healthcare, smart-home and elder-care operations.
5. Healthy payout ratio of 37% and strong yield of 2.59%.
