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Long/short equity, contrarian, short-term horizon, dividend investing
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With the recent market drop, it may be the time to invest in quality companies that are now paying a higher yield. I have reviewed semiconductors, as I have been following Intel (INTC) and others. My review of semiconductors led me to go long Intel. I shorted September 19 puts. I have now moved to the retail industry.

I hope this list is of as much value to you as it has been to me. I set up an EDGAR online screener to find the companies in the sector that pay a dividend. I don't want to look at all the stocks that pay a dividend, so I filtered the results based on the following:

  • Must trade at least 200K shares a day on average.
  • Dividend yield must be a minimum of 3%.
  • Must not have a payout ratio over 80% based on the last quarter.

United Online, Inc. (UNTD) yield: 7.35%. United Online provides consumer products and services over the Internet, primarily in the United States and internationally. The company operates in three segments: FTD, Classmates Media, and Communications. The company was founded in 2001 and is headquartered in Woodland Hills, California. In the last month, the stock has decreased in price 9.18 %, with a one-year change of 3.62%. Comparing to the S&P 500 price changes, the price performances are -3.41% vs. the S&P 500 from a month ago, and year to date difference is -14.34% vs. the S&P 500 price change.

Safeway Inc.(SWY) yield: 3.24%. Safeway together with its subsidiaries, operates as a food and drug retailer in North America. The company was founded in 1915 and is based in Pleasanton, California. In the last month, the stock has decreased in price 10.13 %, with a one year change of -7.87%. Comparing to the S&P 500 price changes, the price performances are -4.42% vs. the S&P 500 from a month ago, and year to date difference is -17.19% vs. the S&P 500 price change.

SYSCO Corporation (SYY) yield: 3.72%. Sysco, through its subsidiaries, distributes food and related products primarily to the foodservice or food-away-from-home industry in North America and Europe. The company was founded in 1969 and is headquartered in Houston, Texas. In the last month, the stock has decreased in price 7.51 %, with a one-year change of -0.36%. Comparing to the S&P 500 price changes, the price performances are -1.64% vs. the S&P 500 from a month ago, and year to date difference is -1.20% vs. the S&P 500 price change.

PetMed Express, Inc. (PETS) yield: 4.85%. PetMed Express doing business as 1-800-PetMeds, markets non-prescription and prescription pet medications; and other health products for dogs, cats, and horses. The company was founded in 1996 and is headquartered in Pompano Beach, Florida. Looking at the price movement over the last month, the stock has fallen in price 4.71 %, with a one year change of -35.92%. Comparing to the S&P 500 price changes, the price performances are 1.34% vs. the S&P 500 from a month ago, and year to date difference is -39.84% vs. the S&P 500 price change.

Foot Locker, Inc. (FL) yield: 3.18%. Foot Locker together with its subsidiaries, operates as a retailer of athletic footwear and apparel. The company operates in two segments, Athletic Stores and Direct-to-Customers. The company was founded in 1879 and is based in New York, New York. Looking at the price movement over the last month, the stock has fallen in price 3.98 %, with a one-year change of 69.89%. Comparing to the S&P 500 price changes, the price performances are 2.12% vs. the S&P 500 from a month ago, and year to date difference is 9.97% vs. the S&P 500 price change.

The Cato Corporation (CATO) yield: 3.6%. The Cato Corporation operates as a specialty retailer of fashion apparel and accessories in the southeastern United States. The company was founded in 1946 and is based in Charlotte, North Carolina. Looking at the price movement over the last month, the stock has fallen in price 8.64 %, with a one-year change of 11.65%. Comparing to the S&P 500 price changes, the price performances are -2.84% vs. the S&P 500 from a month ago, and year to date difference is -3.01% vs. the S&P 500 price change.

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. Nothing in the article should be considered investment advise, but you may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, Google Finance, MSN Money, cnbc.com, Zacks and Yahoo Finance for most of my data.

Source: 6 Profitable Retail Companies