Macy’s, Inc. (NYSE:M) is included among the 12 Best Retail Dividend Stocks to Buy Now. Why Macy’s (M) Remains a Strong Pick Among Retail Dividend Stocks mandritoiu / Shutterstock.com Macy’s, Inc. (NYSE:M) stands among the top retailers in the US, running its business under the Macy’s, Bloomingdale’s, and Bluemercury names. The company offers clothing, accessories, beauty products, and home essentials through roughly 680 stores as well as its online channels. In recent years, Macy’s, Inc. (NYSE:M) has c ...

Industry Overview - The retail sector has undergone significant digital transformation accelerated by the COVID-19 pandemic, shifting from supply-driven models to data-driven strategies focused on personalized offerings [2] - US retail sales increased for the third consecutive month in August, indicating continued consumer spending despite challenges such as higher prices and a cooling job market [3][4] - Retail purchases rose by 0.6% from the previous month, with a notable 0.7% increase when excluding autos, driven by strong performance in online retail, clothing, and sporting goods [4] Investment Opportunities - The retail industry has reached a point of relative stability, making it an attractive option for investors looking for opportunities linked to rising consumer demand [5] - Retail companies distributed $34.6 billion in dividends in 2024, a significant increase from $18.1 billion in 2018, highlighting the sector's strong track record of rewarding shareholders [5] Company Highlights - **Macy's, Inc. (NYSE:M)**: - Operates under Macy's, Bloomingdale's, and Bluemercury, focusing on clothing, accessories, and home essentials through approximately 680 stores and online channels [10] - Has been upgrading stores and expanding its online marketplace, with a current quarterly dividend of $0.1824 per share and a dividend yield of 4.32% as of September 22 [12] - **American Eagle Outfitters, Inc. (NYSE:AEO)**: - Specializes in casual clothing for teens and young adults, operating 1,185 stores and expanding globally through franchises [13] - Recently declared a quarterly dividend of $0.125 per share, maintaining regular payments for the last two decades, with a dividend yield of 2.79% as of September 22 [15] - **Best Buy Co., Inc. (NYSE:BBY)**: - A multinational retailer in consumer electronics, reporting revenue of nearly $9.44 billion in Q2 2025, reflecting a 1.6% year-over-year increase in comparable sales [17] - Offers a quarterly dividend of $0.95 per share, with a dividend yield of 5.25% as of September 22, and has increased dividends for 12 consecutive years [18]

Financial Performance & Outlook - Q1 2025 revenue reached $43.5 million, a decrease of 18.7% year-over-year [18] - The company experienced a negative adjusted EBITDA of $1.6 million, representing -3.6% of revenue, compared to a positive $1.9 million, or 3.5% of revenue, in the same period last year [18] - Grove anticipates sequential revenue growth in Q2 and Q3 of 2025, with a return to slight year-over-year growth in Q4 [19] - Full-year 2025 revenue is projected to decline by mid-single-digit to low double-digit percentage points year-over-year [35] - The company expects full-year 2025 adjusted EBITDA to range from negative low single-digit millions to positive low single-digit millions [35] Strategic Initiatives & Transformation - Grove is shifting its business model away from default subscriptions, which is expected to result in higher lifetime value (LTV) and improved payback [27] - The company is expanding its product mix through third-party expansion, owned brand innovation, and mergers and acquisitions (M&A) [62] - Grove aims to increase its assortment by 40% in 2025 by adding over 100 brands [71] Key Achievements in 2024 - Grove achieved a positive adjusted EBITDA of $1.3 million in fiscal year 2024 [8, 58] - The company experienced positive operating cash flow in the last three quarters of 2024 [8] - Grove successfully paid off $72 million in term debt [8, 58]