Three Dividend Payers Hitting New Highs During The Pandemic

The shutdowns ordered by city and state officials had the perverse effect of labeling brick-and-mortar businesses as either essential or non-essential. An essential business designation allowed those businesses to remain open. Non-essential companies were forced to close their doors; those companies whose employees could not do their jobs from home soon found they were furloughing or laying off employees and missing out on up to three months of revenue.

Now that the states are beginning to reopen, much of the focus is on when and whether “non-essential” businesses will get back to business, allowing workers to get back to their “non-essential” jobs and earn some “non-essential” paychecks. But I digress.

Not only were the companies with “essential” designations able to stay open, but they also picked up the commerce that would have gone to closed businesses. Three months of shopping at a store a shopper may not have visited previously changed their shopping habits. In many cases, for many individuals, this new shopping habit has already become permanent.

Here are three essential retail companies that will stay top of mind for consumers and continue to grow their dividends.

Walmart, Inc. (WMT) stores became the place to shop. Offering everything from groceries, to clothing, to mobile phones, to sporting goods, consumers knew they could find what they wanted or needed at their nearby Walmart. (And with 11,500 stores, most people have a nearby Walmart.)

Not only that, but Walmart’s online retail sales business is second only to Amazon. On the dividend front, the Walmart payout has grown for 47 consecutive years.

Every February, the company declares a year’s worth of dividends, giving investors the confidence they will receive dividends for the next four quarters.

The Walmart share price did not participate in the torrid start-of-June stock market rally; in fact, the share value peaked on May 19 and has dropped by $8.00 from that peak.

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