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7 Good Dividend Stock Opportunities In The Retail Sector

There’s really nothing better than finding solid dividend stocks on the cheap.

The stability offered by a stable income stream, coupled with attractive upside stemming from a low stock price, can provide investors with an extremely rare mix of safety and growth. But the problem is that these opportunities are few and far between. Why?

Well, it’s simple: investors love companies that pay consistently rising dividends so much that they’re hardly ever trading at cheap valuations.

Furthermore, it’s nearly impossible to just accidentally come across inexpensive dividend stocks. Unless you’re closely paying attention to the market on a day-to-day basis, you’ll simply never know when a solid dividend stock falls in price enough to enter “buy” territory.

Luckily for readers, monitoring the market for attractive dividend opportunities is all we do here at Income Investors. And you better believe we took notice when the retail sector plunged on Friday, taking down several interesting dividend stocks in the process.

These are the results I'm talking about...

Guess? -- Yield: 7.32%

Guess? (NYSE:GES) employs 13,500 people, generates revenue of $2,204.31 million and has a net income of $84.82 million. The current market capitalization stands at $1.01 billion.

Guess?’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $192.03 million. The EBITDA margin is 8.71% (the operating margin is 5.51% and the net profit margin 3.85%).

Financials: The total debt represents 0.41% of Guess? assets and the total debt in relation to the equity amounts to 0.62%. Due to the financial situation, a return on equity of 7.77% was realized by Guess?.

Twelve trailing months earnings per share reached a value of $0.76. Last fiscal year, Guess? paid $0.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.21, the P/S ratio is 0.47 and the P/B ratio is finally 1.01. The dividend yield amounts to 7.32%.

Stock Charts:

Long-Term Stock Price Chart of Guess? (GES)
Long-Term Stock Price Chart of Guess? (GES)
Long-Term Dividend Payment History of Guess? (GES)
Long-Term Dividend Payment History of Guess? (GES)
Long-Term Dividend Yield History of Guess? (GES)
Long-Term Dividend Yield History of Guess? (GES)


Macy's Inc -- Yield: 5.19%

Macy's Inc (NYSE:M) employs 157,900 people, generates revenue of $27,079.00 million and has a net income of $1,070.00 million. The current market capitalization stands at $8.78 billion.

Macy's Inc’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,388.00 million. The EBITDA margin is 12.51% (the operating margin is 7.53% and the net profit margin 3.95%).

Financials: The total debt represents 37.12% of Macy's Inc assets and the total debt in relation to the equity amounts to 179.69%. Due to the financial situation, a return on equity of 22.27% was realized by Macy's Inc.

Twelve trailing months earnings per share reached a value of $2.19. Last fiscal year, Macy's Inc paid $1.39 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.50, the P/S ratio is 0.33 and the P/B ratio is finally 2.13. The dividend yield amounts to 5.19%.

Stock Charts:

Long-Term Stock Price Chart of Macy's Inc (M)
Long-Term Stock Price Chart of Macy's Inc (M)
Long-Term Dividend Payment History of Macy's Inc (M)
Long-Term Dividend Payment History of Macy's Inc (M)
Long-Term Dividend Yield History of Macy's Inc (M)
Long-Term Dividend Yield History of Macy's Inc (M)


Gap -- Yield: 4.07%

Gap (NYSE:GPS) employs 141,000 people, generates revenue of $15,797.00 million and has a net income of $920.00 million. The current market capitalization stands at $8.63 billion.

Gap’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,154.00 million. The EBITDA margin is 13.64% (the operating margin is 9.65% and the net profit margin 5.82%).

Financials: The total debt represents 23.16% of Gap assets and the total debt in relation to the equity amounts to 68.02%. Due to the financial situation, a return on equity of 33.29% was realized by Gap.

Twelve trailing months earnings per share reached a value of $1.67. Last fiscal year, Gap paid $0.92 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.69, the P/S ratio is 0.57 and the P/B ratio is finally 3.52. The dividend yield amounts to 4.07%.

Stock Charts:

Long-Term Stock Price Chart of Gap (GPS)
Long-Term Stock Price Chart of Gap (GPS)
Long-Term Dividend Payment History of Gap (GPS)
Long-Term Dividend Payment History of Gap (GPS)
Long-Term Dividend Yield History of Gap (GPS)
Long-Term Dividend Yield History of Gap (GPS)


Target Corporation -- Yield: 3.77%

Target Corporation (NYSE:TGT) employs 341,000 people, generates revenue of $73,785.00 million and has a net income of $3,321.00 million. The current market capitalization stands at $35.75 billion.

Target Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,124.00 million. The EBITDA margin is 9.66% (the operating margin is 7.49% and the net profit margin 4.50%).

Financials: The total debt represents 31.69% of Target Corporation assets and the total debt in relation to the equity amounts to 98.48%. Due to the financial situation, a return on equity of 24.64% was realized by Target Corporation.

Twelve trailing months earnings per share reached a value of $5.45. Last fiscal year, Target Corporation paid $2.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.77, the P/S ratio is 0.48 and the P/B ratio is finally 2.96. The dividend yield amounts to 3.77%.

Stock Charts:

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


Nordstrom -- Yield: 3.46%

Nordstrom (NYSE:JWN) employs 72,500 people, generates revenue of $14,437.00 million and has a net income of $600.00 million. The current market capitalization stands at $7.32 billion.

Nordstrom’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,677.00 million. The EBITDA margin is 11.62% (the operating margin is 7.63% and the net profit margin 4.16%).

Financials: The total debt represents 36.44% of Nordstrom assets and the total debt in relation to the equity amounts to 322.04%. Due to the financial situation, a return on equity of 36.24% was realized by Nordstrom.

Twelve trailing months earnings per share reached a value of $1.87. Last fiscal year, Nordstrom paid $1.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.38, the P/S ratio is 0.51 and the P/B ratio is finally 8.53. The dividend yield amounts to 3.46%.

Stock Charts:

Long-Term Stock Price Chart of Nordstrom (JWN)
Long-Term Stock Price Chart of Nordstrom (JWN)
Long-Term Dividend Payment History of Nordstrom (JWN)
Long-Term Dividend Payment History of Nordstrom (JWN)
Long-Term Dividend Yield History of Nordstrom (JWN)
Long-Term Dividend Yield History of Nordstrom (JWN)


Wal-Mart Stores -- Yield: 3.05%

Wal-Mart Stores (NYSE:WMT) employs 2,300,000 people, generates revenue of $482,130.00 million and has a net income of $15,080.00 million. The current market capitalization stands at $200.85 billion.

Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33,559.00 million. The EBITDA margin is 6.96% (the operating margin is 5.00% and the net profit margin 3.13%).

Financials: The total debt represents 25.07% of Wal-Mart Stores assets and the total debt in relation to the equity amounts to 62.12%. Due to the financial situation, a return on equity of 18.15% was realized by Wal-Mart Stores.

Twelve trailing months earnings per share reached a value of $4.61. Last fiscal year, Wal-Mart Stores paid $1.96 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.42, the P/S ratio is 0.42 and the P/B ratio is finally 2.58. The dividend yield amounts to 3.05%.

Stock Charts:

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


Costco Wholesale -- Yield: 1.11%

Costco Wholesale (NASDAQ:COST) employs 126,000 people, generates revenue of $118,719.00 million and has a net income of $2,376.00 million. The current market capitalization stands at $70.83 billion.

Costco Wholesale’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,927.00 million. The EBITDA margin is 4.15% (the operating margin is 3.09% and the net profit margin 2.00%).

Financials: The total debt represents 16.69% of Costco Wholesale assets and the total debt in relation to the equity amounts to 45.82%. Due to the financial situation, a return on equity of 20.71% was realized by Costco Wholesale.

Twelve trailing months earnings per share reached a value of $5.48. Last fiscal year, Costco Wholesale paid $1.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.78, the P/S ratio is 0.60 and the P/B ratio is finally 5.87. The dividend yield amounts to 1.11%.

Stock Charts:

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