The retail sector was already a bloodbath before the coronavirus pandemic hit. However, the virus and the continued effects have made the industry a hard place to tread. The various stay-at-home orders, changing consumer tastes, and growth in “click & collect’’ have only accelerated the issues within the retail industry. But it’s not all bad news – for those retailers that were already moving ahead with omnichannel processes and/or unique operating niches, the pandemic has been a boon.
This includes our Best Dividend Stocks List pick in the sector.
Thanks to its focus and product mix, our pick is considered “Amazon-proof” and has already featured a strong customer base. Better still, our pick has used the pandemic to embrace omnichannel operations to serve its customers through a variety of means. The end result has been record sales and earnings growth for the second quarter, coming right during the thick of the pandemic.
And recently, investors have been treated to a whopping 10%+ dividend increase.
All of this represents the changing of the retail guard, the haves and have nots, and the strength of our pick in the sector. Add in potential growth from new operations as well as continued positive sales guidance for the future and you have a recipe for long-term success.
To summarize, here are five reasons why you should own this stock:
- Focus on a specialized and “Amazon-proof” rural market niche allowing it to pull in more than $$8 billion in annual revenues.
- A record 50%+ jump to EPS last quarter during the height of the pandemic!
- Increased its dividend for 10 years straight with its last increase being well over 10%!
- New store concepts in the pet-care sector are fueling torrid growth.
- Healthy payout ratio of 25% and growing yield of 1.08%.
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