Our second stock boasts a slightly smaller dividend, but much more impressive stock performance of late.
Guess (GES) has handily topped the market so far in 2013, with impressive 36% gains in its pocket. Most recently, the retailer popped in late May after posting an earnings beat, even though profits were down by more than 50% year-over-year.
Of course, the recent upward trend is just a slight reversal to what had been an ugly slide. Guess lost half of its value from late 2010 to late 2012, and still remains 34% off that peak despite its recent run.
The slide was at least slightly padded by Guess’ dividend program — not only did it improve its dividend by 25% to 20 cents in that time, but it also paid out two special dividends of $2.20 in 2010 and $1.40 at the end of 2012. GES’ regular dividend currently yields just more than 2.4%.
One thing to look out for, though: The company’s cash flows have been trending in the wrong direction in the past couple years.