5 Best Retail Dividend Stocks to Buy

In this article, we discuss 5 best retail dividend stocks to buy. If you want to read our detailed analysis of the retail sector and the performance of dividend stocks, go directly to read 10 Best Retail Dividend Stocks to Buy. 

5. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 63

Costco Wholesale Corporation (NASDAQ:COST) is a Washington-based retail company that operates a chain of membership-only warehouse clubs. The company is known for offering a wide range of products at discounted prices to its members.

Costco Wholesale Corporation (NASDAQ:COST) is one of the best dividend stocks on our list as it has raised its payouts for 19 years in a row. The company currently pays a quarterly dividend of $1.02 per share and has a dividend yield of 0.74%, as of July 19.

Of the 943 hedge funds tracked by Insider Monkey at the end of Q1 2023, 63 funds owned stakes in Costco Wholesale Corporation (NASDAQ:COST), worth collectively over $1.8 billion. Among these hedge funds, Bridgewater Associates was one of the company’s leading stakeholders in Q1.

4. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 65

The Home Depot, Inc. (NYSE:HD) is an American home improvement retailer. The company offers a wide range of products, tools, and services for various home improvement projects. In the first quarter of 2023, the company posted revenue of $37.3 billion and its net earnings amounted to over $3.8 billion. Its operating cash flow for the quarter grew to $5.6 billion, from $3.8 billion in the prior-year period.

On May 18, The Home Depot, Inc. (NYSE:HD) declared a quarterly dividend of $2.09 per share, which was in line with its previous dividend. The company maintains a 13-year streak of consistent dividend growth, which makes it one of the best dividend stocks in the retail sector. The stock has a dividend yield of 2.62%, as of July 19.

The number of hedge funds tracked by Insider Monkey owning stakes in The Home Depot, Inc. (NYSE:HD) grew to 65 in Q1 2023, from 62 in the previous quarter. These stakes are collectively worth over $2 billion.

Madison Investments highlighted The Home Depot, Inc. (NYSE:HD)’s sustainable activities in its Q2 2023 investor letter.

“The Home Depot, Inc. (NYSE:HD) celebrates 30 years of giving back. Team Depot was created in 1993 as a way of organizing associates who were eager to volunteer in their communities. For 30 years, Team Depot associates have worked side by side with non-profits around the United States. Focus areas include spending time with the elderly and activities with at risk youth. Team Depot also improves the homes and lives of veterans and helps communities impacted by natural disasters.

During the quarter, Home Depot set a goal for battery-powered products to represent over 85% of outdoor lawn equipment sales in the U.S. and Canada by the end of fiscal 2028. Push lawn mowers and handheld leaf blowers and trimmers will run on rechargeable battery technology instead of gas. This will reduce 2 million metric tons of greenhouse gas emissions annually.”

3. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 67

Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based retail company that specializes in home improvement products and services. The company currently pays a quarterly dividend of $1.10 per share, having raised it by 5% in May this year. This marked the company’s 59th consecutive year of dividend growth. With a dividend yield of 1.91% as of July 19, LOW is one of the best dividend stocks on our list.

As of the close of Q1 2023, 67 hedge funds in Insider Monkey’s database reported having stakes in Lowe’s Companies, Inc. (NYSE:LOW), compared with 68 in the previous quarter. These stakes have a consolidated value of over $5 billion. With over 10 million shares, Pershing Square was the company’s leading stakeholder in Q1.

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

Number of Hedge Fund Holders: 73

The TJX Companies, Inc. (NYSE:TJX) is an American multinational retail company that specializes in off-price retailing. In the first quarter of 2023, the company generated $11.78 billion in revenues, which showed a 3.2% growth from the same period last year. Its operating cash flow for the quarter came in at $745 million. The company also paid $341 million to shareholders in dividends during the quarter.

One of the best dividend stocks on our list, The TJX Companies, Inc. (NYSE:TJX) currently offers a quarterly dividend of $0.3325 per share. The company has been rewarding shareholders with growing dividends for the past 26 years. As of July 19, the stock has a dividend yield of 1.55%.

At the end of Q1 2023, 73 hedge funds tracked by Insider Monkey were bullish on The TJX Companies, Inc. (NYSE:TJX), up from 69 in the previous quarter. The collective value of these stakes is over $2.75 billion.

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 91

Walmart Inc. (NYSE:WMT) tops our list of the best dividend stocks. The multinational retail corporation has a remarkable track record of consistently increasing its dividends for 50 consecutive years. Currently, it pays a quarterly dividend of $0.57 per share. As of July 19, the stock’s dividend yield stands at 1.47%.

In the first quarter of 2023, Walmart Inc. (NYSE:WMT) saw an increase in its popularity among hedge funds. Hedge fund positions in the company rose from 66 in the previous quarter to 91, according to Insider Monkey’s database. The combined value of stakes owned by these funds amounted to over $5.6 billion.

You can also take a look at 12 Best Reddit Stocks To Buy Now and 20 Stocks Wall Street Analysts Expect to Dive The Most

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