Dominating omnichannel is the only way retailers can compete these days. No longer can a retailer operate separate online and in-store divisions. Consumers want their products quickly and they want to receive those products however they choose. The ongoing pandemic has only strengthened this fact and moved omnichannel further into the forefront. For firms getting the delicate dance right, it’s been smooth sailing over the last year.
And that includes our Best Dividend Stocks List pick in the sector.
Our pick has continued to invest in its logistics infrastructure, online operations and in-store experience to get consumers what they want and how they want it. This has led to record sales figures, monster profits and big shareholder rewards. Dividend increases and buybacks have continued to grow over the last year.
At the same time, our pick has found more ways to grow.
Buying back a former spin-off for dirt cheap instantly boosts its warehouse infrastructure, adds shipping capacity and moves it back into the fragmented commercial distribution sector for its main operating niche. This move will help boost profits and revenues further, while giving it another outlet to improve its logistics network. In the end, our pick will be able to apply the same omnichannel magic to a new sector.
For investors, this proves that our pick continues to win on the retail front.
To summarize, here are five reasons why you should own this stock:
- Sales jumped by more than 20% during the most recent quarter, to reach well over $30 billion!
- Managed to navigate the omnichannel waters with ease – using its massive store footprint, informational tutorials and online applications.
- New focus on the lucrative contractor market and a big acquisition will continue to boost profits.
- Steadily paid a dividend since its IPO and grew its payout nearly 11% in 2020.
- Healthy payout ratio of 52% and growing yield of 2.26%.
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