The TJX Companies Raises Dividend: A Look at its Growth Strategy

The TJX Companies, Inc. TJX has raised its quarterly dividend by 13% to 42.5 cents per share, signaling its continued commitment to shareholder value. The next dividend payment is scheduled for June 5, for its shareholders on record as of May 15, 2025.This marks the 28th dividend increase in the past 29 years for The TJX Companies, with a compound annual growth rate of 20%. Alongside the dividend hike, the company has reaffirmed its commitment to share repurchase programs, with plans to repurchase approximately $2-$2.5 billion worth of shares in fiscal 2026. This move signals confidence in TJX's ability to sustain strong sales, profitability and cash flow.The TJX Companies has made notable strides in strengthening its financial foundation and increasing shareholder value. During the fourth quarter of fiscal 2025, the company returned $1.3 billion to its shareholders. This included the repurchase of 6.9 million shares for a total of $853 million, as well as $421 million paid in shareholder dividends. For the full fiscal-year 2025, TJX returned a total of $4.1 billion to its shareholders.What More Should Investors Know About TJX?The TJX Companies continues to benefit from its commitment to delivering an exceptional shopping experience and unmatched value to customers every day. A key indicator of the company’s strength is the consistent growth in customer transactions, which drove a solid 5% increase in comparable store sales during the fourth quarter of fiscal 2025, surpassing its expectations. Comparable store sales rose 4% at Marmaxx (the United States), 5% at HomeGoods (the United States), 10% at TJX Canada and 7% at TJX International (Europe & Australia). This steady growth highlights TJX's successful strategy and positions it for long-term sustainability, focusing on customer transactions.The TJX Companies remains committed to effective cost control, which has been a key driver of its profitability. The company achieved a pre-tax profit margin of 11.6%, marking a 40-basis-point (bps) increase in the fiscal fourth quarter. This upside was driven by lower-than-anticipated inventory shrink expense and expense leverage on the above-plan sales. This, coupled with a 70-bps expansion in the gross margin, primarily backed by reduced inventory shrink expense and strong markon, demonstrates TJX's operational efficiency and strong control.The TJX Companies has been benefiting from strong growth in both its store network and e-commerce operations. The company is actively expanding its presence in the United States, Europe, Canada and Australia. Management sees significant potential for further expansion, increasing its long-term store target to 7,000 stores, which represents the addition of more than 1,900 stores across existing and announced markets. This expansion reinforces TJX’s confidence in its business model and growth potential. This further solidifies its position as a leading off-price retailer.TJX Stock Past Six Months PerformanceImage Source: Zacks Investment ResearchFinal Words on TJXTJX’s strong dividend increase and share repurchase program underscore its commitment to returning capital to shareholders. The company continues to benefit from its solid performance across both physical stores and e-commerce, driven by consistent growth in customer transactions and operational efficiency. With an expanded store growth target and a focus on long-term sustainability, TJX is well-positioned for continued success and value creation for its shareholders. TJX presently has a Zacks Rank #3 (Hold).In the past six months, the stock has gained 4.6% compared with the industry’s 1.5% growth.Stocks to ConsiderNordstrom, Inc. JWN, a fashion retailer, provides apparels, shoes, beauty, accessories and home goods for women, men, young adults and children, currently sporting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Nordstrom’s current financial-year sales indicates a rise of 1.9% from the year-ago period’s levels. JWN delivered an earnings surprise of 22.2% in the last reported quarter.Urban Outfitters URBN engages in the retail and wholesale of general consumer products, currently holding a Zacks Rank of 2 (Buy). URBN delivered an average earnings surprise of 28.4% in the trailing four quarters. The consensus estimate for Urban Outfitters’ current financial-year sales and earnings indicates growth of 6.6% and 14.5%, respectively, from the year-ago figure.Stitch Fix, Inc. SFIX sells a range of apparel, shoes and accessories for women's, petite, maternity, men's, plus and kids through its website and mobile application in the United States, currently having a Zacks Rank #2. SFIX delivered an average earnings surprise of 48.9% in the trailing four quarters.The Zacks Consensus Estimate for Stitch Fix’s current financial-year earnings indicates growth of 64.7% from the year-ago figure.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Stitch Fix, Inc. (SFIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks