Amazing Retailer With An 8% Dividend Yield
Retailers are popular companies for many people.
But they’re not very exciting for dividend investors.
Why? Because retailers aren’t known for paying dividends.
State Street SPDR S&P Retail ETF (ticker: XRT) only has a 1.3% dividend yield, which is one of the lowest among State Street’s sector ETFs.
However, just because retailers don’t pay high dividends doesn’t mean we should completely ignore them.
Buckle Inc. (ticker: BKE) is a clothing retailer with stores all over the United States.
Buckle should sound familiar.
I recommended the stock back in August for its really high profit margin.
Buckle’s 16% profit margin is one of the highest among all retailers.
For context, retailers’ profit margin usually averages only around 2%.
But while Buckle’s profit margin is excellent, what really excites me about the stock is its dividend.
Buckle has been paying $0.35 every quarter for a few years.
Its regular dividend would give Buckle a 2.6% dividend yield.
2.6% isn’t great, especially without any dividend growth.
However, Buckle also pays a special dividend, and it’s coming up.
You need to own Buckle by January 14 (Wednesday) to get the special dividend.
And you don’t want to miss it!
Buckle is paying a $3 special dividend, which is almost 70% of Buckle’s annual dividend payment.
Buckle’s special dividend raises its dividend yield to an amazing 8.1%!
No other retailer has a dividend yield higher than Buckle’s.
Are you worried about dividend growth?
While Buckle doesn’t raise its regular dividends, Buckle’s special dividend increased 20% compared to last year.
Let’s talk more about the company.
Buckle is an amazing retailer.
The company is most known for its jeans, which account for more than 40% of its revenue.
Last quarter, Buckle’s same-store sales rose 8.3% compared to last year.
Same-store sales is a really important number for retailers.
It shows how much revenue growth is from a retailer’s existing locations, rather than from opening new stores.
A retailer like Buckle being able to grow revenue through its existing stores is huge.
But here’s the craziest part.
Buckle’s price-to-earnings ratio of 13.3x is lower than the retail average of 18x.
So not only are you getting a great dividend, you’re also getting a great stock at an amazing price.
What other retailers do you own for dividends?
Michael Jennings, Editor
Dividend Stocks Research
Category: Dividend Stocks To Buy?, Dividend Yield
