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TJX Companies (TJX) Rewards Shareholders With Dividend Hike
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The TJX Companies, Inc. (TJX - Free Report) remains committed to rewarding shareholders through dividend payments and share buyback activities. For this purpose, the company unveiled a 13% increase in its quarterly dividend. The company’s raised dividend of 29.5 cents per share is payable on Jun 2, 2022 to shareholders of record as of May 12.
This marks TJX Companies’ 25th dividend hike in the last 26 years. The company’s dividend has risen at a compound annual rate of 21% over the said period. This underscores the off-price apparel and home fashions retailer’s commitment toward shareholders alongside highlighting confidence in its growth prospects. For enhancing shareholder value, TJX also stated that it is on track with its solid share repurchase program, with buybacks worth roughly $2.25 to $2.50 billion planned for fiscal 2023.
More on TJX Companies
In the fourth quarter of fiscal 2022, the company returned $1.4 billion to shareholders. Management repurchased and retired 15.2 million shares for $1.1 billion on a trade-date basis while paying $310 million in shareholder dividends. In February 2022, management unveiled a new stock repurchase program, which authorizes the repurchase of up to an incremental $3 billion of the company’s stock.
These factors speak volumes about the company’s confidence in its capacity to generate profitable sales and solid free cash flows. TJX Companies ended fiscal 2022 with cash worth $6.2 billion and generated operating cash flow of $3.1 billion during the fiscal.
Image Source: Zacks Investment Research
Factors Driving Growth
In the fourth quarter of fiscal 2022, earnings and sales increased year over year. TJX Companies’ fourth-quarter earnings came in at 78 cents per share, up from 27 cents reported in the year-ago quarter. Net sales came in at $13,854 million, up 27% from $10,943 million reported in the year-ago quarter. Net sales in the quarter increased 14% from fourth-quarter fiscal 2020 levels. Open-only comp store sales for the company rallied 10% compared with fourth-quarter fiscal 2020 levels. The metric increased 10%, 22% and 1% for Marmaxx (the United States), HomeGoods (the United States) and TJX Canada, respectively.
The company has been benefiting from strength in its HomeGoods segment, which has been seeing robust demand for a while now. In fiscal 2022, HomeGoods posted a 32% open-only comp store sales increase, while the segment’s profit dollars rose more than $225 million compared with fiscal 2020 levels. Management highlighted that it witnessed consistent strength in every key category and geographic region for both HomeGoods and HomeSense in the year. Further, customer traffic and average basket delivered robust growth in fiscal 2022. TJX launched homegoods.com in the third quarter of fiscal 2022. With this launch, the company expects to offer impressive home fashion products at great value on its digital platform.
We believe that the continuation of the strong trend in the segment is likely to keep aiding the company’s performance in the future. These upsides, together with store growth and e-commerce efforts, as well as marketing and loyalty programs, bode well for the company.
This Zacks Rank #3 (Hold) company’s shares have slipped 2.8% against the industry’s growth of 9.7%.
Solid Retail Stocks for Your Portfolio
The Kroger Co. (KR - Free Report) currently sports a Zacks Rank #1 (Strong Buy). Kroger has a trailing four-quarter earnings surprise of 3.8%, on average. KR has an expected earnings per share (EPS) growth rate of 9.9% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year sales suggests growth of 2.4% from the year-ago period’s reported figure. The company has been undertaking efforts to strengthen its position not only for products but also for the way consumers shop. It has been making investments to enhance product freshness and quality and expand digital capabilities.
Target Corporation (TGT - Free Report) , a general merchandise retailer, holds a Zacks Rank #2 (Buy) at present. Target has a trailing four-quarter earnings surprise of 21.3%, on average. TGT has an expected EPS growth rate of 16.5% for three to five years.
The Zacks Consensus Estimate for Target’s current financial-year sales suggests growth of 3.5% from the year-ago period’s reported figure. The company has been deploying resources to enhance omnichannel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide customers with a seamless shopping experience.
Costco Wholesale Corporation (COST - Free Report) currently has a Zacks Rank #2. Costco has a trailing four-quarter earnings surprise of 13.3%, on average. The company’s growth strategies, better price management, a favorable membership trend and the increasing penetration of the e-commerce business reinforce its position.
The Zacks Consensus Estimate for Costco's current financial-year sales suggests growth of 12.3% from the year-ago period’s tally. COST has an expected EPS growth rate of 8.9% for three to five years.
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TJX Companies (TJX) Rewards Shareholders With Dividend Hike
The TJX Companies, Inc. (TJX - Free Report) remains committed to rewarding shareholders through dividend payments and share buyback activities. For this purpose, the company unveiled a 13% increase in its quarterly dividend. The company’s raised dividend of 29.5 cents per share is payable on Jun 2, 2022 to shareholders of record as of May 12.
This marks TJX Companies’ 25th dividend hike in the last 26 years. The company’s dividend has risen at a compound annual rate of 21% over the said period. This underscores the off-price apparel and home fashions retailer’s commitment toward shareholders alongside highlighting confidence in its growth prospects. For enhancing shareholder value, TJX also stated that it is on track with its solid share repurchase program, with buybacks worth roughly $2.25 to $2.50 billion planned for fiscal 2023.
More on TJX Companies
In the fourth quarter of fiscal 2022, the company returned $1.4 billion to shareholders. Management repurchased and retired 15.2 million shares for $1.1 billion on a trade-date basis while paying $310 million in shareholder dividends. In February 2022, management unveiled a new stock repurchase program, which authorizes the repurchase of up to an incremental $3 billion of the company’s stock.
These factors speak volumes about the company’s confidence in its capacity to generate profitable sales and solid free cash flows. TJX Companies ended fiscal 2022 with cash worth $6.2 billion and generated operating cash flow of $3.1 billion during the fiscal.
Image Source: Zacks Investment Research
Factors Driving Growth
In the fourth quarter of fiscal 2022, earnings and sales increased year over year. TJX Companies’ fourth-quarter earnings came in at 78 cents per share, up from 27 cents reported in the year-ago quarter. Net sales came in at $13,854 million, up 27% from $10,943 million reported in the year-ago quarter. Net sales in the quarter increased 14% from fourth-quarter fiscal 2020 levels. Open-only comp store sales for the company rallied 10% compared with fourth-quarter fiscal 2020 levels. The metric increased 10%, 22% and 1% for Marmaxx (the United States), HomeGoods (the United States) and TJX Canada, respectively.
The company has been benefiting from strength in its HomeGoods segment, which has been seeing robust demand for a while now. In fiscal 2022, HomeGoods posted a 32% open-only comp store sales increase, while the segment’s profit dollars rose more than $225 million compared with fiscal 2020 levels. Management highlighted that it witnessed consistent strength in every key category and geographic region for both HomeGoods and HomeSense in the year. Further, customer traffic and average basket delivered robust growth in fiscal 2022. TJX launched homegoods.com in the third quarter of fiscal 2022. With this launch, the company expects to offer impressive home fashion products at great value on its digital platform.
We believe that the continuation of the strong trend in the segment is likely to keep aiding the company’s performance in the future. These upsides, together with store growth and e-commerce efforts, as well as marketing and loyalty programs, bode well for the company.
This Zacks Rank #3 (Hold) company’s shares have slipped 2.8% against the industry’s growth of 9.7%.
Solid Retail Stocks for Your Portfolio
The Kroger Co. (KR - Free Report) currently sports a Zacks Rank #1 (Strong Buy). Kroger has a trailing four-quarter earnings surprise of 3.8%, on average. KR has an expected earnings per share (EPS) growth rate of 9.9% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year sales suggests growth of 2.4% from the year-ago period’s reported figure. The company has been undertaking efforts to strengthen its position not only for products but also for the way consumers shop. It has been making investments to enhance product freshness and quality and expand digital capabilities.
Target Corporation (TGT - Free Report) , a general merchandise retailer, holds a Zacks Rank #2 (Buy) at present. Target has a trailing four-quarter earnings surprise of 21.3%, on average. TGT has an expected EPS growth rate of 16.5% for three to five years.
The Zacks Consensus Estimate for Target’s current financial-year sales suggests growth of 3.5% from the year-ago period’s reported figure. The company has been deploying resources to enhance omnichannel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide customers with a seamless shopping experience.
Costco Wholesale Corporation (COST - Free Report) currently has a Zacks Rank #2. Costco has a trailing four-quarter earnings surprise of 13.3%, on average. The company’s growth strategies, better price management, a favorable membership trend and the increasing penetration of the e-commerce business reinforce its position.
The Zacks Consensus Estimate for Costco's current financial-year sales suggests growth of 12.3% from the year-ago period’s tally. COST has an expected EPS growth rate of 8.9% for three to five years.