11 Best Retail Dividend Stocks to Buy

4. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 74

The TJX Companies, Inc. (NYSE:TJX) is an American multinational off-price department store corporation that operates various brands, including T.J. Maxx, Marshalls, and HomeGoods. The company has a flexible business model that allows for active inventory management and alluring price strategies. It is focusing on expanding its operations, both in physical stores and market presence. In the past 12 months, the stock has surged by over 18.5%.

In the fourth quarter of FY25, The TJX Companies, Inc. (NYSE:TJX) reported revenue of $16.35 billion, which fell slightly by 0.3% from the same period last year. The revenue surpassed analysts’ estimates by $109.7 million. For FY25, the company’s consolidated comparable sales grew by 4%, driven by an increase in customer transactions. Its net income for the year came in at $4.9 billion, up 10% from the prior-year period. TJX Canada remained the winner in Q4 2025 with over 10% comparable store sales.

The TJX Companies, Inc. (NYSE:TJX)’s cash position was also encouraging for income investors. The company generated $6.1 billion in operating cash flow in FY25 and ended the year with $5.3 billion in cash. Moreover, it also returned $4.1 billion to shareholders, including $1.6 billion in dividends. This showed the company’s commitment to returning value to shareholders.

On February 26, The TJX Companies, Inc. (NYSE:TJX) declared a 13.3% growth in its quarterly dividend to $0.425 per share. This was the company’s 28th consecutive year of dividend growth, which makes TJX one of the best dividend stocks in the retail sector. The stock offers a dividend yield of 1.27%, as of March 29.