Traditional Retailer With Amazon-Proof Business Model Makes It to Best Dividend Stocks List
Dividend.com has added a retail giant to the Best Dividend Stocks List and removed a diversified industrial company from the list.
Quick. Name two sectors facing plenty of potential detrimental headwinds? There's a good chance you said retail and housing. Online and e-commerce continue to eat traditional brick-and-mortar retailers' lunch, while the lingering effects of the housing crisis still persist. So, naturally, a retailer operating in the home goods sector would be suffering even more, right?
Well, our latest Best Dividend Stocks List pick is proving skeptics wrong in a big way.
Plumbing equipment, riding lawn mowers and other home-improvement items still require a hands-on touch and an in-store shopping experience. You simply don't buy sheets of plywood from an app and have them delivered to your doorstep. And thanks to its relatively Amazon-proof business model, our pick has continued to see rising sales in the face of the housing and retail slowdown.
But that's only half the story. Our pick has a long runway to keep the growth going.
For starters, home prices, ownership and the economy are once again on the rise. This has boosted sales further in the medium term. Its domestic focus and the new tax plan haven't hurt either. The longer term is equally as rosy. Our pick has begun to court Millennials through workshops, a growing online presence and new exclusive products designed for customers in their age brackets. And it's working in spades.
For investors, all of this creates plenty of cash flows and increased dividends. Back in February, our pick was able to increase its payout by nearly 16% based on its strong cash-flow generation and improving sales.
All in all, our pick continues to prove skeptics wrong and operates in the tough/home environments with gusto.
Five reasons why you should own this stock:
- Huge operating footprint with more than $100 billion in revenues recorded in 2017.
- Targeting key Millennial consumer demographic with new tech, products and hands-on installation/workshops.
- Winning the war in omni-channel retailing with the successful integration of store and online shopping options.
- Distributed over $12 billion in dividends and share buybacks in 2017.
- Healthy payout ratio of 43% and increasing yield of 2.05%.
All data in the table above updated as of 06/19/2018.
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MORE ABOUT THIS STOCK
Trailing 5-Year Dividend Payout History
- Annualized Growth Over The Last 5 Years: 25.1%.
As a dividend investor, you need access to the best and safest stocks on the market. Dividend.com’s DARS ratings have been providing you with reliable and profitable stock analysis since 2008, and this addition is no exception.
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