The earnings season is ending and there has been a lot of good news and some surprises.
Many retailers who benefited from last year’s pandemic-related increase in sales continued to post strong gains, much to the delight of their shareholders.
Even better, some of these retailers are even managing to grow their dividends, making their buying shares even smarter.
From the pages of The Motley Fool, Jennifer Saibil suggests three names: Target (NYSE: TGT), Walmart (NYSE: WMT), and Starbucks (NASDAQ: SBUX), which have recently posted strong earnings and increased dividends as well.
Mega-retailer Target continues to dominate the US market, and the reason is no mystery.
These are Target’s three major strengths: omnichannel capability, commitment to value and creativity in the distribution process.
And it’s the way these three ingredients work together that make the retail chain a shopping force.
Target has been pumping money into its digital program for years, developing a solid backbone of features to support all the ways customers want to shop.
The group also revamped its stores and created new store formats to bring it all together, as the third quarter numbers show: in-store sales increased by $ 3.8 billion and digital sales grew by 3.1 billion. .
When it comes to value, Target has created and expanded several lines of their brands that mimic the best labels in quality and design, but offer greater value for money.
The distribution process also played an important role in the company’s ability to effectively grow its digital business.
Over 95% of digital orders were fulfilled in-store in the third quarter, a percentage the company has managed to maintain in the past three quarters.
Its mix of same-day options also work together to get products to shoppers faster and cheaper.
In September, Target announced a 32% dividend increase to $ 0.90 per share.
The yield at the current price is 1.27% – this is the company’s 50th consecutive annual dividend increase, and with it Target has joined the elite of Dividend Kings.
Walmart also benefited from customer returns to stores in the third quarter.
The largest retailer in the world experienced a 9% year-over-year increase in US sales and raised its full-year outlook to more than 6% sales growth.
It’s hard to compete with Walmart’s breadth – it operates more than 4,700 stores in the United States alone and more than 10,000 worldwide.
Yet the group is still finding ways to grow: advertising is becoming an important part of its sales strategy.
The company is also leaning on artificial intelligence to improve its platform, using technology-based models to offer more competitive services.
It is also hiring large customers like Home Depot, providing them with a last mile delivery service under the customer name.
These are the types of ventures that will generate more growth for the mega-retailer as the number of stores becomes a less sustainable way to grow.
Walmart is also working to generate more organic growth and meanwhile raised its dividend in February to $ 0.55, with a current yield of 1.5%.
This is the company’s 48th consecutive annual dividend increase – truly impressive.
Starbucks scored another win in its recovery from pandemic lows in fiscal 2021 fourth quarter.
For the period ending October 3, overall revenue increased 31% year-over-year.
By 2030, the company plans to add an additional 21,000 stores to its nearly 34,000 current locations.
The company is also growing more than the number of stores, cultivating relationships to bring ready-to-drink products, such as bottled cold brew, to a larger resale market through agreements with bottlers and other suppliers.
Although Starbucks’ share price fell after fourth-quarter accounts, due to supply chain concerns, the company made aggressive moves to maintain its supply of merchandise and meet demand.
In September, Starbucks raised the dividend to $ 0.49, with a current yield of 1.6%.
This is his 11th consecutive dividend hike and just another reason to invest in this stable but growing company.
Trend-online Deputy Director, born in 1978.
After completing his studies at the Classical High School “Antonio Calamo” of Ostuni I entered the world of economics.
For about twenty years I have been dealing with Stock Exchange and Finance. After having worked as a financial promoter for several years, in 2005 I joined the Trend-online team as an editor, to later become deputy director of the cylinder head. Among other countless activities, I take care of maintaining relationships with all the experts, analysts and traders, consulted daily by Trend-online.
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