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Defend Against Fickle Retail With Dividends

These 3 stocks offer decent payouts in an otherwise bare sector

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kohls kssDividend Yield: 2.6%

Kohl’s (KSS) is the newest kid on the dividend block, just starting its payout the year before last. Still, in that short time, the dividend has improved 40% — from an initial 25 cents in 2011 to 35 cents as of the most recent quarter that translates into a 2.6% yield.

That payout has helped turn a flat performance since Kohl’s first dividend into a slightly positive total return. The end of last year was rough for KSS shareholders, but the stock has made up for it with a market-beating 24% climb so far in 2013.

Meanwhile, the retailer has beat earnings estimates in the past four quarters, including recent better-than-expected numbers that caused Kohl’s to raise its outlook. That’s no guarantee that KSS will continue to outperform, but it helps — and even if it stays flat, that dividend will help shareholders come out a little bit ahead.

As of this writing, Alyssa Oursler was long RTH.

Article printed from InvestorPlace Media,

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