Retail Stocks: A Good Yield Means Better Total Return

Stocks have acted very strangely of late. Some retail stocks that have strong increase in their value have given back some of their gains while others have maintained their appreciation. However, one has to look at the total return which includes the dividend stocks pay during the year along with that arenization to really judge the return.

Retail stocks generally pay a meager dividend. However, some companies occasionally pay special dividends, like Costco did in 2020.

Below is a selected list of retail stocks, which based on yesterday’s closing price have a yield that, I believe will become more important during 2022. I expect that several retailers will again raise their dividend in the current fiscal year.

The list below shows retail stocks listed based on the yield. They are listed from highest to lowest yield based on yesterday’s closing prices.

Walgreen WBA 3.57%; Gap 2.88%, Best Buy BBY 2.82%, Tapestry 2.67%, Ralph Lauren 2.43%, Macy’s M 2.37%, Starbucks 2.02%, Kohl’s KSS , 1.93%, Home Depot HD 1.83%, Kroger 1.73%, Target TGT 1.61%, Walmart WMT 1.53%, Dicks Sporting Goods DKS 1.53%, TJX 1.52%, Lowe’s Corp.1.36%, E Bay 1.16%, Associated British Foods 1.25%, MC (LVMH) 1.00%, Nike NKE 0.84%, CVS 0.82%, Dollar General DG 0.78%, Costco 0.64%, Appel 0.53%, Dillard’s DDS 0.33%.  

Many companies do not pay a divided. They include Amazon, Abercrombie and Fitch ANF , Academy Sports + Outdoors, Alibaba Group, Bed Bath & Beyond BBBY , Burlington, Capri, Nordstrom JWN , Lands’ En LE d, Shopify, Ulta Beauty ULTA and Urban Outfitters.

POSTCRIPT: A number of companies do not feel that a dividend is necessary, that their stock appreciation is sufficient to keep their shareholders happy. The more enlightened companies share profits with their shareholders along the way and gain greater loyalty. Dillard’s meager yield and Ralph Lauren generous yield both reflect management decisions. I think in 2022 greater attention to total return will motivate investors.