Kohl’s Corporation (KSS), And Talk Of Making Money In This Industry?

At this time, J.C. Penney Company, Inc. (NYSE:JCP) doesn’t pay a dividend to its shareholders. And, the stock price of this once-prominent retail giant is trading near its 52-week low – with no real positive developments to speak of that may bring it back up. In fact, analysts estimate that share price will continue to sink over the next year.

Likewise, the long-term story for Dillard’s, Inc. (NYSE:DDS) department stores isn’t stellar – although there are some analysts who feel this company could be worth a second look. That’s because the company continues to position itself between the likes of high-end stores, such as Nordstrom, Inc. (NYSE:JWN) and Macy’s, Inc. (NYSE:M).

Dillard’s, Inc. (NYSE:DDS) shares fell by roughly 10% earlier this year following fourth-quarter 2012 earnings results. On that note, the company has brought its earnings growth and gross margin expansion up for the past 10 consecutive quarters. With this in mind, there could be some share growth potential due to the company’s efficient operating performance and market-leading benchmarks on store productivity.

As with J.C. Penney Company, Inc. (NYSE:JCP) and Dillard’s, Inc. (NYSE:DDS), Kohl’s Corporation (NYSE:KSS) will also need to keep using aggressive pricing to keep its sales moving upward. While it may take years for stores such as J.C. Penney to fight back, as long as Kohl’s can continue its stellar performance through its online component, it’s likely that this company can survive using a combination of Internet and physical techniques to keep customers coming back.

The bottom line

Investors who want to take a chance on the retail department-store industry would be well advised to keep a close watch on current sales figures, as well as each company’s future projections. While it’s unlikely that investors will obtain a great deal of share growth – at least not in the short term – it is possible that choosing a company such as Kohl’s Corporation (NYSE:KSS) that also pays out a healthy dividend could be somewhat enticing. This would allow at least some return in the form of regular income to an investor.

The article Can Investors Still Make Money in Retail Stocks? originally appeared on Fool.com and is written by Nauman Aly.

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