What do you think of when I say “Wal-Mart?”
Whether you like the discount retail chain or not, you can’t honestly deny that Wal-Mart has become a giant of the service industry.
But at the moment, Wal-Mart is being overshadowed by another retailer in many important ways, most notably of which are the payouts given out to shareholders…
Investors of one particular services company are busy counting up their profits right now.
Why?
Because their investment is earning them big-time returns in both share price increase and dividend yield.
This particular company’s stock has outperformed that of Wal-Mart by 20 percentage points already this year. While Wal-Mart has fallen from January highs of around $90 to very recent lows of $72, the new and current “Retail King” has jumped up from $73 at the beginning of the year to over $80.
So what is this new “Retail King” and how is it besting Wal-Mart?
I’m talking about Target Corp. (TGT).
And to add icing to the cake that is a climbing stock price, Target also just decided to hike up its dividend payouts by 7.7%…
And finally serving as the cherry that tops both the icing and the cake is the fact that Target’s dividend yield of 2.8% is now beating Wal-Marts 2.7%!
Most Target investor’s couldn’t be happier with the strides Target has made, especially relative to that of Wal-Mart. Target has now increased its dividend for a 44th consecutive year.
Plus, Target has now beaten analysts’ estimates for 3 quarters in a row after a dismal mid-2013 to late-2014.
Another dividend to keep an eye on is that of FedEx (FDX), which just raised its dividend up to 25 cents per share, an increase of 25%.
It’s still-tiny yield of 0.5% doesn’t even come close to matching UPS’ 2.9% yield, but FedEx is now close to doing something that UPS failed to do a couple of years ago: come to an agreement to buy TNT Express, a Dutch shipper.
Success on that front could further propel FedEx, including its share prices and dividend.
Both Target and FedEx are showing positive signs with little to dislike (barring FedEx’s low dividend yield), but successful investing is all about timing.
Thankfully, timing is our specialty. Check out some of our resources like Midas Premium and System 60 for ways to learn how to easily time winning investments.
