Dividend 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.