Dividend.com has added a household name to the Best Dividend Stocks list. This company changed the face of retail in America and has more than 100 million customers who shop at its stores every day. Its website is one of the top 3 most visited U.S. retail websites list. It has achieved triple-digit growth in e-commerce sales over the past 4 years. If this company was a country, its sales would land it in the top 30 in terms of GDP. They have more than 10,000 stores in more than 25 countries.
Last year, the company spent more than $10 billion in share repurchases and dividends. The stock has shown great relative strength–one of the key factors we use to rate stocks–and is trading near its 52-week high. In late 2015, the stock price fell more than 35% from its top. It bottomed out in early 2016 and is now staging a comeback to its 2015 highs.
To summarize, here are 4 reasons why you should own this stock:
- More than $400 billion in revenue.
- A dividend aristocrat, this company has raised its dividend for more than 40 years in a row.
- It is now plowing billions of dollars into e-commerce, which will catapult the company into its next phase of growth.
- Given its credentials, the stock is up for grabs at only 17 times 2016 earnings.
Soft Removal of a Banking Giant
We are removing a bank that we added to the Best Dividend Stocks list on 07/07/2014. Due to the banks significant exposure to oil assets, the stock is down 25% since we recommended it. Price performance is only one of five parameters we look at while rating stocks. The attractiveness of the banks dividend yield, potential earnings growth in 2017, valuation, and dividend reliability still remain very healthy. Considering all of these factors, we continue to rate this stock at 3.5. We expect the price to rebound once oil rebounds again, until then it won’t feature on our Best Dividend Stocks list.