TJX Companies Boosts Common Stock Dividend by 13%
TJX Companies, Inc., the leading off-price retailer of apparel and home fashions in the U.S. and worldwide, announced on March 1st that its Board of Directors has approved a quarterly dividend increase of 13%. This is a sign of confidence that the company’s business strategy remains a good investment for shareholders. With this move by TJX Companies, investors will receive a dividend payout of $0.26 per share, up from $0.23 per share, effective from March 29, 2018. This increased dividend will put an annualized payout of $1.04 per share.
Why the Increase?
The decision to increase the quarterly dividend came on the back of the company’s solid track record of delivering robust earnings growth and strong cash flow generation. It shows a commitment to enhance shareholder value through the payment of all-time high dividends. The management team at TJX Companies is confident that the company’s off-price business model, multi-year growth strategies, and operational excellence will continue to drive its future growth, enabling it to provide long-term value to its shareholders.
Company Performance
TJX Companies has, over the years, consistently delivered healthy top- and bottom-line growth. The company, which operates under brands like Marshalls, T.J. Maxx, HomeGoods, Sierra Trading Post, Winners, and HomeSense, generated net sales of $35.8 billion in the year ending January 28, 2017. This marked a solid 6.0% YoY increase.
The Stock Market: How This Will Affect You
Stock market analysts reckon that the quarterly dividend increase will likely trigger a bullish sentiment on the company’s shares. Investors should take note, as this signals that the company’s management is confident about the future growth prospects of the company. For investors, it’s worth noting that TJX Companies’ shares trade at a discount compared to those of peers like Macy’s, J.C. Penney, and Nordstrom. This, coupled with the company’s consistent performance, indicates that there’s still room for capital gains as well.
Conclusion
Investing in TJX Companies’ stock has been fruitful in the past, and the recent increase in its dividend payout should assure investors that the future is bright for TJX Companies. The company is well-diversified and has a flexible business model that’s designed to withstand market headwinds. As such, investors are expected to continue to find this stock attractive in the long run.
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