4 Dividend Champions Stocks in the Retail Sector
By:NewsyStocks   Friday, July 22, 2021 10:01 AM

The retail industry in the U.S. is huge. One could easily imagine the size of the industry just by looking at its contribution to the gross domestic product. It is estimated that two-third of U.S. GDP comes from retail consumption.

Store openings and closings data is a an indicator of the economy's momentum. In 2011, the number of store openings is expected to surpass store closings by a large margin in the current fiscal year.

For investors, it is important to choose retail companies with caution. We have shortlisted top 4 companies that give out the highest dividend and also whose shares have gained in value in excess of 30 percent in the last year.

Darden Restaurants Inc. (NYSE: DRI) tops the list with a dividend yield of 3.27 percent and a one year increase in stock value of 31.3 percent. The company has a total market capitalization of $7.2 billion and the beta is 0.9, which indicates that the risk on investment is low. Five year earnings growth is expected to be 9.50 percent. The company has a high debt ratio of 43.04 percent. Analysts have given a moderate buy rating on a $59 price target. DRI last traded at $53.55, up 0.90 percent on Thursday.

Bob Evans Farms Inc. (Nasdaq: BOBE) comes in at second place with a dividend yield of 2.21 percent and a one year stock price increase of 47.6 percent. The company has a total market capitalization of $1.1 billion and the beta is 0.9, which indicates that the risk on investment is low. Five year earnings growth is expected to be 9.60 percent. The company has a low debt ratio of 16.97 percent. Analysts have given a moderate buy rating on a $38 price target. The stock last traded at $36.79, up 0.88 percent.

Limited Brands Inc. (NYSE: LTD) is third on the list with a dividend yield of 2.02 percent and an increase of 66.3 percent in stock value over the last year. The company has a total market capitalization of $12.2 billion and has a beta of 1.7, which indicates that the risk on investment is on the higher side. The five year earnings growth is expected to be 7.20 percent. The company has a very high debt ratio of 75.70 percent. Analysts have given a moderate buy rating on a $44.20 price target. LTD last traded at $40.35, up 0.17 percent on Thursday.

Nordstrom Inc. (NYSE: JWN) has a dividend yield of 1.84 percent and its stock prices have increased by 57.2 percent in the last year. The company has a total market capitalization of $10.9 billion and has a beta of 1.7, which indicates that it is a risky investment as the price volatility is high. Five year earnings growth is expected to be 6.90 percent. The company has a high debt ratio of 51.61 percent. Analysts have given a moderate buy rating on a $53.20 price target. JWN last traded higher by 0.43 percent to $51.40 on Thursday.


 

Sponsors

Advertisement


Advertisement