April Cyclical Dividend Favorites – Tailored Brands And More
Consumer services and durables companies’ performance is generally driven by the economic cycle. Businesses such as Tailored Brands and Guess’ offer products that are considered luxury items, rather than those of absolute necessity, for example gambling and day spas. In periods of growth, consumers benefit from higher discretionary income which drives these companies’ profitability. Higher profits by and large lead to higher dividend payout so economic growth is an opportune time to benefit from these consumer stocks. Today I will share with you my list of high-dividend consumer cyclical stocks you should consider for your portfolio.
Tailored Brands, Inc. (NYSE:TLRD)
TLRD has a decent dividend yield of 2.50% and their current payout ratio is 36.55% . Over the past 10 years, TLRD has increased its dividends from US$0.28 to US$0.72. The company has been a reliable payer too, not missing a payment during this time. Tailored Brands’s earnings per share growth of 287.72% outpaced the us specialty retail industry’s 8.22% average growth rate over the last year. More detail on Tailored Brands here.
Guess’, Inc. (NYSE:GES)
GES has a nice dividend yield of 3.96% and a reasonably sustainable dividend payout ratio , with analysts expecting a 63.09% payout in three years. GES has increased its dividend from US$0.32 to US$0.90 over the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. GES performed above the US Specialty Retail industry average based on it’s return on equity over the last year. Dig deeper into Guess’ here.
Nordstrom, Inc. (NYSE:JWN)
JWN has a solid dividend yield of 3.14% and is currently distributing 56.49% of profits to shareholders . The company’s dividends per share have risen from US$0.64 to US$1.48 over the last 10 years. They have been dependable too, not missing a single payment in this time. Over the next year, analysts are estimating a double digit EPS growth of 30.31%. Continue research on Nordstrom here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
