Investing

Here Come the Holidays: 3 High-Yield Retail Dividend Stocks Are Cheap and One Yields 11%

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Key Points

  • Dividend stocks will be on everybody’s list for Santa this year.
  • Look for another 25 basis points in rate cuts before the end of the year.
  • After the holidays, reshape your investments with a top-notch financial advisor. Click here to learn more.

Dividend stocks are a favorite among investors for good reason. They provide a steady income stream of passive income and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.

In simpler terms, it is the sum of income and stock appreciation. Dividend stocks can boost investment success by delivering regular income and capital appreciation.

While the Christmas holiday still seems a ways off, as we all know, it will be here before you know it. We decided to screen our 24/7 Wall St. retail high-yield dividend database, looking for quality companies with big dividends and the potential for a big holiday shopping season. These look like great ideas, and those with a higher risk tolerance may want to look at an ultra-high-yield stock that makes the cut.

Why do we cover dividend stocks?

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Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Kohl’s

retail dividend stocks
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Kohl’s has 1,165 locations, operating stores in every state except Hawaii.

This top retailer offers an excellent entry point, yielding a massive 10.91%. Even if the company cut the dividend in half, it would still be substantial. Kohl’s Corp. (NYSE: KSS) operates department stores in the United States. The company lousy third-quarter results that missed Wall Street estimates. However, the company could always cut the dividend if conditions continue to deteriorate, so investors should be aware.

In addition, Kohls announced Michaels CEO and retail veteran Ashley Buchanan will take over as CEO, effective Jan. 15. Buchanan will succeed Tom Kingsbury, who will stay as an advisor to the new CEO and retain his position on Kohl’s board until his retirement in May 2025.

It provides private label, exclusive, and national brand apparel, footwear, accessories, beauty, and home products to children, men, and women customers. The company also sells its products online at Kohls.com and through mobile devices.

The company provides its products primarily under the brand names of:

  • Croft & Barrow
  • Jumping Beans
  • SO
  • Sonoma Goods for Life
  • Food Network
  • LC Lauren Conrad
  • Nine West
  • Simply Vera
  • Vera Wang

Kohl’s partners with Amazon.com Inc. (NASDAQ: AMZN), where customers can return items through the retailer. Some feel the deal should be expanded with a full partnership or even Amazon buying Kohl’s.

Macy’s

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Macy’s is an American holding company of department stores.

Nothing says the holidays more than this venerable legacy retailer, which offers a sweet 4.37% dividend. Macy’s Inc. (NYSE: M) is an omnichannel retail organization that operates stores, websites, and mobile applications in the United States.

The company sells a range of merchandise, such as:

  • Apparel and accessories for men, women, and kids
  • Cosmetics
  • home furnishings and other consumer goods under the Macy’s, Bloomingdale’s, and Blue Mercury brands

It also operates under license agreements in Dubai, the United Arab Emirates, and Al Zahra, Kuwait.

The company, founded in 1830 and based in New York, New York, was formerly known as Federated Department Stores and changed its name to Macy’s in June 2007.

UPS

retail dividend stocks
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An American multinational shipping and receiving and supply chain management company founded in 1907.

With the explosion of internet commerce and coming holiday deliveries, United Parcel Service Inc. (NYSE: UPS) stands at the forefront of this growth, offering enormous potential. The company also provides a rich 4.83% dividend, making it an attractive investment option.

UPS is a package delivery company that provides transportation and delivery, distribution, contract logistics, ocean freight, air freight, customs brokerage, and insurance services.

It operates through two segments:

  • U.S. Domestic Package
  • International Package

The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States.

The International Package segment provides guaranteed-day and time-definite international shipping services, comprising guaranteed-time-definite express options in:

  • Europe
  • Asia
  • the Indian subcontinent
  • the Middle East
  • Africa
  • Canada
  • Latin America

UPS is not just a package delivery company. It also provides diverse services, including international air and ocean freight forwarding, post-sales, and mail and consulting services.

Furthermore, it offers:

  • Truckload brokerage services
  • Supply chain solutions to the healthcare and life sciences industries
  • Financial and information services
  • Fulfillment and transportation management services

This broad portfolio of services ensures the company’s stability and potential for growth, making it an attractive and secure investment option.

Four Magnificent Ultra-High-Yield Dividend Stocks Investors Can Hold for Decades

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1 https://www.fdic.gov/national-rates-and-rate-caps

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