Why TJX Companies Belongs in Every Dividend Growth Portfolio

Core Viewpoint - TJX Companies is positioned as a strong long-term investment opportunity, with plans for increased capital returns and a solid growth outlook for 2025 and beyond [3][4][10]. Financial Performance - The company has announced a 13% increase in capital distribution, marking four consecutive years of annual increases since the COVID-related suspension [4]. - The annual dividend is set at $1.50, with a dividend yield of 1.22% and a three-year annualized dividend growth rate of 11.91% [5][6]. - The dividend payout ratio stands at 35.21%, indicating a healthy balance between earnings and distributions [5][6]. Market Position and Growth - TJX Companies is recognized as a leading off-price retailer, expected to sustain mid-single-digit top-line growth through the middle of the next decade [10]. - The company is projected to improve its operating leverage, leading to higher single-digit earnings growth, with earnings expected to exceed$ 9.50 by 2034 [10]. Institutional Interest - Institutional ownership exceeds 90%, with a notable shift from selling to buying in Q1 2025, indicating strong institutional confidence [9]. - Analysts have a consensus rating of Moderate Buy, with price targets being lifted following the F2026 guidance, suggesting a potential 10% upside from early March levels [8]. Stock Performance and Technical Indicators - The stock has shown resilience, with a bullish outlook supported by a Bullish Flag Pattern, indicating potential price increases of 10%, 25%, and 100% in the near, mid, and long term respectively [11].