Billionaire Steven Cohen’s Top 5 Dividend Stock Picks

2. Ross Stores, Inc. (NASDAQ:ROST)

Point72 Asset Management’s Stake Value: $237,888,552

Dividend Yield as of June 26: 0.83%

On June 23, Wells Fargo downgraded Ross Stores, Inc. (NASDAQ:ROST) to Equal Weight from Overweight. It kept its price target unchanged at $245. The firm said the downgrade was based on valuation following the stock’s strong re-rating. The analyst noted that Ross’ execution “has been essentially flawless,” but believes risks tied to its lower-income customer base, tougher year-over-year comparisons, and rising inventory levels justify a more cautious stance. Wells Fargo added that the “easy money” in the stock has already been made.

Earlier, on May 26, Barclays raised its price recommendation on ROST to $260 from $242. It reiterated an Overweight rating on the shares. The firm said the company’s first-quarter comparable sales growth of 17% comfortably exceeded the consensus estimate of 8.6%. The analyst added that Ross’ “compelling” merchandise assortment and marketing efforts helped attract new customers, while its higher fiscal 2026 outlook still appears conservative.

Ross Stores, Inc. (NASDAQ:ROST) operates two off-price retail chains: Ross Dress for Less and dd’s DISCOUNTS. The company sells apparel and home fashion products through both brands.