TJX Companies declared a quarterly dividend of $0.26 per share, reflecting a 13% increase from the previous dividend paid in March 2020. The off-price retailer had suspended its dividends earlier this year due to the pandemic.
The new dividend is payable March 4, 2021, to shareholders of record on February 11, 2021. TJX Companies (TJX) had announced last month that it expects to reinstate its quarterly dividend in the fourth quarter of fiscal 2021, subject to the approval of the board of directors.
Like several other retailers, TJX also suffered due to the temporary closure of stores amid the lockdowns. The company is seeing improved sales following the reopening of its stores, especially in the home category. However, it will take time to rebound to pre-pandemic levels as apparel sales continue to be weak. TJX did not provide any specific guidance for fiscal 4Q but stated that the overall open-only comp-store sales were down 7% in the first two weeks of the fourth quarter. (See TJX stock analysis on TipRanks)
Last month, Citigroup analyst Paul Lejuez increased his price target on TJX to $73 from $63 and reiterated a Buy rating. The analyst noted that the trends in 3Q improved significantly compared to 2Q, with better sales and strong gross margin. While the analyst expects TJX’s sales to decelerate in 4Q due to COVID-led store closures in Europe, he views this as a temporary issue.
TJX scores a Strong Buy analyst consensus based on 14 unanimous Buys. The average price target stands at $71.08, reflecting an upside potential of 8.7% from current levels. Shares have advanced 7.1% year-to-date.
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