Current Analysis: Kohl's Corporation

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Kohl’s (KSS) operates about 1,174 department stores in 49 states that sell moderately priced private-label and national brand clothing, shoes, accessories, cosmetics, and home furnishings.

Most of these stores are in strip centers. Kohl’s also operates a large digital sales business. Women’s apparel is Kohl’s largest category, having generated 26% of its 2023 sales.

The retailer, headquartered in Menomonee Falls, Wisconsin, opened its first department store in 1962.

Three key data points gauge KSS or any dividend paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys also best tell whether any company has made, is making, and will make money.

KSS Price

Over the past year, Kohl’s share price declined about 9.2% from $24.21 to $21.99 as of Wednesday’s market close.

If KSS shares trade in the range of $18.00 to $30.00 this next year, its recent $21.99 share price might rise to $23.00 by next year. Of course, Kohl’s price could also drop about the same $1.01 estimated amount, or more.

My $1.01 upside estimate is near the median of 1 year target estimates from 14 analysts tracking KSS for brokers.

KSS Dividend

Kohl’s has paid variable Quarterly dividends since March, 2011.

Kohl’s most recent Q dividend of $0.50 was declared May 15th  for shareholders of record June12th and the dividend was paid June 26th.

A forward looking $2.00 annual dividend yields 9.1% at Wednesday’s closing share price.

KSS Returns

To put it all together, add Kohl’s projected annual dividend of $2.00 to the estimated price upside of $1.01 to get a $3.01 estimated gross gain per share for the coming year.

At Wednesday’s $21.99 share price, a little under $1000 would buy 45 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, could cost us about $0.22 per share.

Subtracting that unlikely $0.22 brokerage cost from the $3.01 estimated gross gain reveals a net gain of $2.79 X 45 shares = $125.55 for about a 12.5% estimated net gain on the year.

Furthermore, the $91.00 annual dividend income from $1K invested is over 4 times greater than the $21.99 single share price. By these numbers, Kohl’s is an ideal dividend dog.

You might choose to pounce on Kohl’s Corp. It is a 62 year-old dividend-paying Wisconsin-based nationwide department store firm that has an 13 year track record paying quarterly variable dividends.

The exact track of Kohl’s future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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