Through the holiday spending season, the gap between the winners and losers in retail is becoming more pronounced.
As we’ve discussed before, omnichannel is now the standard issue with buy online, pick up in-store (BOPIS), two-day shipping and a seamless mobile/store experience being the norm. For those firms that are getting it right, it means rising sales, strong brand recognition and repeat customers. And for our Best Dividend Stocks List pick in the sector, it means record-setting performance and super strong dividend growth.
Our pick continues to deliver on new digital initiatives and recently unveiled a continuation of that strategy featuring new apps based on augmented reality, expedited shipping and better in-store/online experience for customers. The payoff will be over the longer term as the firm delivers robust sales and takes market share from rivals.
In the meantime, our pick continues to deliver for shareholders as well. Profits remain swift and the firm’s cash flows continue to be the envy of the sector. So much so that the firm was able to increase its dividend by a whopping 30% at the start of 2019 and conduct a mammoth-sized $15 billion buyback program.
With our pick getting it right on so many fronts, the new year should continue to be robust as it unveils its updated mission to improve its total shopping experience and rule the omnichannel realm.
To summarize, here are five reasons why you should own this stock:
1. Sales jumped more than 3.5% during the third quarter of fiscal 2019 to reach well over $25 billion!
2. The firm has managed to navigate the omnichannel waters with ease – using its massive store footprint, informational tutorials and apps to create a “frictionless, interconnected shopping experience.”
3. Features an Amazon-proof business niche that provides a big moat.
4. Steadily paid a dividend since its IPO and increased its payment by more than 30% at the start of 2019.
5. Healthy payout ratio of 51% and growing yield of 2.34%.
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