This article presents an overview of 5 Best Retail Dividend Stocks to Buy. For a detailed overview of such stocks read our article, 11 Best Retail Dividend Stocks to Buy.
5. TJX Companies Inc (NYSE:TJX)
Number of Hedge Fund Investors: 62
Off-price retailer TJX Companies Inc (NYSE:TJX) ranks fifth in our list of the best retail dividend stocks to invest in according to hedge funds. Earlier this month TJX Companies Inc (NYSE:TJX) increased its dividend by 13%. This was the 27th year of dividend growth for TJX Companies Inc (NYSE:TJX).
Insider Monkey’s database of 933 hedge funds shows that 62 hedge funds had stakes in TJX Companies Inc (NYSE:TJX) as of the end of 2023.
Madison Investments U.S. Equity Strategy stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its fourth quarter 2023 investor letter:
“Whether it’s performance by market capitalization, sectors, or any other factor, stock markets are intrinsically cyclical. Some cycles are long-term, taking decades to unfold, and some are short-term, lasting months, weeks, or even days. Many are medium in length, lasting two, three, or several years. Most cycles occur because a trend often creates the seeds of its own reversal. We at Madison Investments are certain that market cycles will occur, but it doesn’t mean we can predict their timing or magnitude. We don’t think we can. This is perhaps a major difference between us and many other investors. Most investors believe it’s their job to time market cycles despite overwhelming evidence that it’s nearly impossible to do so with enough accuracy to make such an effort profitable over long periods. We avoid making calls about market cycles and spend zero minutes thinking about them, not because we don’t think they can be important, but because we think they’re inherently unpredictable in duration.
This mentality of our team is generally true for other kinds of cycles, such as macroeconomic, industry, or company-specific, but is a bit more nuanced for those. We make no explicit prediction about cycles on which we base a buy or sell decision. Still, we are acutely aware of the various cyclical forces at work, and depending on whether we think we have the ability to assess the length or intensity of such, we may incorporate them to various degrees.
Let’s use a few examples to illustrate our point. We’ve been invested in off-price retailer The TJX Companies, Inc. (NYSE:TJX) for just under ten years, having invested in 2014 in our Large Cap strategy. TJX is one of the most recession-resistant companies we own due to its perennial value proposition to customers; customers always like to save money, especially when economic times get tough. As a result, the company has had an exceedingly steady revenue and earning profile over the past several decades…” (Click here to read the full text)
