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3 S&P 500 Dividend Holdouts That Should Join the Party

Cash flow and solid business models leave room for payouts

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Dollar Tree

Dollar Tree NASDAQ:DLTRDiscount retailing is all the rage, witness the appreciation in stock prices for Dollar Tree (NASDAQ:DLTR), Family Dollar (NYSE:FDO) and Dollar General (NYSE:DG), all well above the S&P 500’s one-year return. FDO pays a dividend, so why not DLTR? You would think with 87% of the stock owned by institutional investors, a dividend is a no-brainer, but not yet. OK, Dollar Tree might be a tad tight, as cash and cash flow levels top out at just about $1 billion, and DLTR likes to add stores. But this is a sound business with a long history, and a token gesture seems appropriate.

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