The coronavirus has created a lot of ‘battleground’ sectors in the market and the economy. As the pandemic has raged, there have been some tectonic shifts in many industries. The virus has upended our tastes, as well as how we work and function in society. The changes are most evident in the retail sector.
Already on shaky ground due to rising ecommerce and omnichannel sales, many retailers have been hit very hard over the last year. Falling sales, lower profits, dividend cuts, and even bankruptcies have become the norm. However, recent consumer data may suggest that retail’s coronavirus woes may be ebbing.
The question is whether or not the sector is now a buy.
The answer may not be so simple. For investors — especially dividend seekers — recent retailer wins may not be a reason to get excited. There are still plenty of tailwinds affecting the sector.
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