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TJX: 20% Annual Dividend Increases Make It A Worthy Stock For Dividend Growth Investors

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Sure Dividend


  • TJX reported 4% same-store sales in the most recent quarter.
  • TJX has grown its dividend an average of 23% for the past 22 years.
  • The dividend payout ratio is still very low, leaving plenty of room for high dividend growth moving forward.
  • While TJX’s stock is barely off of its 52-week high, the company’s current P/E is barely above its normal P/E.

By Nate Parsh

With more than $35 billion in sales, TJX Companies (NYSE:TJX) is the largest off-price apparel and home fashion retailer in the country. TJX is also a member of the Dividend Achievers, a group of stocks with 10+ consecutive annual dividend increases. You can view all 261 Dividend Achievers here.

TJX operates T.J. Maxx and Marshalls stores, HomeGoods, TJX Canada and TJX International. TJX partners with more than 20,000 vendors around the world who are attempting to clear inventory to make way for new merchandise. It is able to buy these products at steep discount, usually 20-60% below regular prices. The company is then able to turn around and offer these name brands at lower prices to their customers. With a global network of stores, it is able to identify what brands a local community prefers and ship products to those locations every week.

TJX stock is up a little more than 9% year to date, while the S&P 500 is up 2%. This article will explore TJX’s recent earnings report, impressive dividend growth history, and valuation.

Earnings Overview

TJX released fourth quarter and fiscal year 2018 earnings on February 28th. Excluding a benefit due to tax reform, quarterly earnings per share were $1.19. This missed analysts’ estimates by $0.08, but still improved upon the previous year’s quarter EPS by 16%. Revenues grew 15.7% year over year to a company record of $10.96 billion. Revenue for the quarter topped expectations by $200 million. Same-store sales had been expected to show 2.2% growth, but TJX posted 4% growth in the quarter. Each of the company’s four divisions saw same-store-sales growth of at least 3%.

Excluding a positive benefit due to tax reform and an extra week during the fiscal year, EPS for the year improved 9% to $3.85. Sales increased 8% to $35 billion. Same-store-sales comps

Are you looking for stocks with even longer histories of dividend growth than TJX? Consider the Dividend Aristocrats and Dividend Champions, which have raised their dividends for 25+ consecutive years. Stocks with durable competitive advantages and growing dividends, like the Dividend Aristocrats and Dividend Champions, have been proven to outperform over long periods of time. See our full list of confirmed buy and sell recommendations with our service Undervalued Aristocrats, which provides actionable buy and sell recommendations on some of the most undervalued dividend growth stocks around. Click here to learn more.

This article was written by

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Sure Dividend helps individual investors find high quality dividend growth stocks with strong competitive advantages suitable for long-term holding. The authors who write for Sure Dividend on Seeking Alpha are as follows:Bob CiuraBen ReynoldsJosh Arnold

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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