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4 Top Dividend Picks From The Discount Variety Stores Industry To Benefit From Black Friday

The last month of the year is the most important month within the whole year because up to 1/4 of the full-year sales are generated within December. 

Everybody loves to buy great things that helps you to improve you life quality, makes living easier and keeps your friends and family members happy.

Black Friday is the first day on which analysts start to measure the consumer activity by spending money. Black Friday gives us a good sign if the shopping season will end at new records or not.


Today I would like to present you four of the most popular 
discount store operators that pay the best industry dividends and have managed to grow them over the past years.

The 4 highest yielding discount stores within the United States

Target (NYSE:TGT) has a market capitalization of $40.41 billion. The company employs 361,000 people, generates revenue of $73.301 billion and has a net income of $2.999 billion. Target’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.513 billion. The EBITDA margin is 10.25 percent (the operating margin is 7.33 percent and the net profit margin 4.09 percent).


Financial Analysis: The total debt represents 37.86 percent of Target’s assets and the total debt in relation to the equity amounts to 110.13 percent. Due to the financial situation, a return on equity of 18.52 percent was realized by Target. Twelve trailing months earnings per share reached a value of $3.73. Last fiscal year, Target paid $1.38 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.15, the P/S ratio is 0.55 and the P/B ratio is finally 2.49. The dividend yield amounts to 2.69 percent and the beta ratio has a value of 0.79.



Long-Term Stock Price Chart Of Target (TGT)
Long-Term Dividend Payment History of Target (TGT)
Long-Term Dividend Yield History of Target (TGT)

Wal-Mart (NYSE:WMT) has a market capitalization of $264.58 billion. The company employs 2,200,000 people, generates revenue of $469.162 billion and has a net income of $17.756 billion. Wal-Mart’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36.302 billion. The EBITDA margin is 7.74 percent (the operating margin is 5.93 percent and the net profit margin 3.78 percent).


Financial Analysis: The total debt represents 26.65 percent of Wal-Mart’s assets and the total debt in relation to the equity amounts to 70.91 percent. Due to the financial situation, a return on equity of 23.02 percent was realized by Wal-Mart. Twelve trailing months earnings per share reached a value of $5.20. Last fiscal year, Wal-Mart paid $1.59 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.59, the P/S ratio is 0.56 and the P/B ratio is finally 3.52. The dividend yield amounts to 2.32 percent and the beta ratio has a value of 0.41.



Long-Term Stock Price Chart Of Wal-Mart (WMT)
Long-Term Dividend Payment History of Wal-Mart (WMT)
Long-Term Dividend Yield History of Wal-Mart (WMT)

Family Dollar (NYSE:FDO) has a market capitalization of $8.03 billion. The company employs 34,000 people, generates revenue of $10.391 billion and has a net income of $443.58 million. Family Dollar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $932.44 million. The EBITDA margin is 8.97 percent (the operating margin is 6.62 percent and the net profit margin 4.27 percent).


Financial Analysis: The total debt represents 13.92 percent of Family Dollar’s assets and the total debt in relation to the equity amounts to 32.30 percent. Due to the financial situation, a return on equity of 30.63 percent was realized by Family Dollar. Twelve trailing months earnings per share reached a value of $3.83. Last fiscal year, Family Dollar paid $0.94 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.21, the P/S ratio is 0.77 and the P/B ratio is finally 5.02. The dividend yield amounts to 1.49 percent and the beta ratio has a value of 0.31.



Long-Term Stock Price Chart Of Family Dollar (FDO)
Long-Term Dividend Payment History of Family Dollar (FDO)
Long-Term Dividend Yield History of Family Dollar (FDO)


Costco Wholesale (NASDAQ:COST) has a market capitalization of $54.80 billion. The company employs 103,000 people, generates revenue of $105.156 billion and has a net income of $2.061 billion. Costco Wholesale’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.999 billion. The EBITDA margin is 3.80 percent (the operating margin is 2.90 percent and the net profit margin 1.96 percent).

Financial Analysis: The total debt represents 17.15 percent of Costco Wholesale’s assets and the total debt in relation to the equity amounts to 47.95 percent. Due to the financial situation, a return on equity of 17.58 percent was realized by Costco Wholesale. Twelve trailing months earnings per share reached a value of $4.63. Last fiscal year, Costco Wholesale paid $0.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.09, the P/S ratio is 0.52 and the P/B ratio is finally 5.06. The dividend yield amounts to 0.99 percent and the beta ratio has a value of 0.66.


Long-Term Stock Price Chart Of Costco Wholesale (COST)
Long-Term Dividend Payment History of Costco Wholesale (COST)
Long-Term Dividend Yield History of Costco Wholesale (COST)

This is only a quite overview about the most successful discount retailers on the capital market. Other dividend stocks are TJX Companies or special retailer like GAP and American Eagle Outfitters.

Good stocks with no dividends are Ross Stores or Urban Outfitters. Clothing retailers are also more cyclic but they can boost your returns in new dimensions or draw down your current performance figures.

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*I am long WMT. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.