Department Store Stocks That Pay You: Kohl’s Corporation (KSS), Macy’s, Inc. (M)

Unfortunately, nothing in this world is perfect. TJX’s payout ratio is 18%, which isn’t bad, but it only pays 1%. Considering the volatility and the potential for a total cut, particularly with a P/E ratio of 19.21 and a price/book of 9.5, I could sleep better and get a similar rate of return in my savings account. While TJX is pretty secure, it’s also a bit pricey for a “discount” retailer.

Breaking it Down

As of this moment, I can’t say that many great things about department store stocks that pay you. While they do today, they’re not giving me a ton of confidence that a bad quarter or a missed earnings estimate won’t drop their dividends. If it comes down to keeping either the dividend or the company alive, responsible management will choose the company. But my goal is still to live off of my dividends, and I don’t think this is the way to do so.

The article Department Store Stocks That Pay You originally appeared on Fool.com and is written by Chris Hodge.

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