10 Best January Dividend Stocks To Buy

5. Williams-Sonoma, Inc. (NYSE:WSM)

Ex-Dividend Date: January 17

Williams-Sonoma, Inc. (NYSE:WSM) is an American retail company that owns a portfolio of premium home goods brands, such as its flagship Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, and Rejuvenation. the stock emerged as a winner last year, surging by over 95% and outperforming the market by a wide margin. That said, similar to other retailers in the discretionary and home goods sectors, the company has seen a drop in sales due to inflation in the post-pandemic period, following the increased demand for home goods during the pandemic.

Williams-Sonoma, Inc. (NYSE:WSM) reported $1.8 billion in revenue for the third quarter of 2024, a 3% decline year-over-year, though it exceeded analysts’ expectations by $16 million. The company is drawing investor interest as it raises its full-year forecast. It now expects full-year revenue to decline by 3% to 1.5% and has increased its operating margin guidance by 40 basis points, projecting a range of 17.8% to 18.2%.

From a dividend perspective, Williams-Sonoma, Inc. (NYSE:WSM) demonstrates strong cash generation. In Q3 2024, the company reported an operating cash flow of $254 million and returned $73 million to shareholders via dividends. In addition, it has been growing its payouts for 15 consecutive years, which makes WSM one of the best dividend stocks on our list. The company currently pays a quarterly dividend of $0.57 per share and has a dividend yield of 1.18%, as of January 5.

With a collective stake value of over $968 million, 35 hedge funds tracked by Insider Monkey held positions in Williams-Sonoma, Inc. (NYSE:WSM) at the end of Q3 2024. Among these hedge funds, Leonard Green & Partners was the company’s leading stakeholder in Q3.