Thanks to the COVID-19 pandemic, the market has continued to become very bifurcated. Winners and losers dot various sectors, but none have been as prevalent as retail. The sector was already becoming mixed of have and have nots, but the pandemic sped up the process. Those retailers that have been successful at migrating towards online and omnichannel distribution channels have continued to succeed in spades.
And that includes our Best Dividend Stocks List pick in the sector.
Our pick continues to win big from its investments in logistics and technology spending, which has only benefited the firm, as consumers have flocked toward its many offerings. Sales have continued to hit new records, while profits and cash flow have surged since the pandemic took hold.
Even better is that our pick has continued to position itself toward new growth channels, including repositioning itself toward the lucrative contractor market. Using its tech and logistics improvements, our pick has made a new effort to court contractors. A series of new on-demand distribution centers will boost offerings for large builders. Meanwhile, the firm has announced plans to expand internationally by opening its first series of stores in Mexico.
These efforts, plus the continued work/stay-at-home shift, caused by the pandemic have plenty of potential to keep the gains, sales and cash flowing at our pick. And that should benefit investors down the road. Already our pick has emerged as a dividend champion with years’ worth of payout increases under its belt.
To summarize, here are five reasons why you should own this stock:
- Sales jumped by more than 23% during the most recent quarter, to reach $30+ billion!
- Managed to navigate the omnichannel waters with ease – using its massive store footprint, informational tutorials and online applications.
- New focus internationally and on the lucrative contractor market will continue to boost profits.
- Steadily paid a dividend since its IPO and recently reaffirmed its dividend.
- Healthy payout ratio of 52% and a growing yield of 1.9%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.
