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5 Best Retail Dividend Stocks to Buy for 2020

The 2019 holiday season is approaching and retailers will be raking in massive profits on Black Friday as Christmas nears. While the retail apocalypse devoured longstanding brands like Sears and K-mart, a few premium retailers are doing quite well in 2019 .

Our job is to provide you with the best retail stocks to buy for 2020 so you can add some premium retail stocks to your portfolio.

Best Retail Stocks for 2020

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CompanyEPS (most recent quarter)Comparable Sales Growth (Most recent quarter)Dividend YieldYears of Rising Dividends
Walmart (NYSE: WMT)$1.16*3.2%1.7%44
Dollar General (NYSE: DG)$1.65*4.0%0.8%3
Target (NYSE: TGT)$1.36*4.5%2.36%51
Costco (NASDAQ:COST)$1.73*5%0.86%15
Ross Stores (NASDAQ:ROST)$1.03*5%0.88%12

Walmart

Walmart Stock YTD 2019

Walmart, America's largest retailer, should benefit well from the upcoming holiday season. Shares are up as of late and the company continues to experience robust growth into its online grocery delivery business. US same store sales are steadly increasing as well, meaning Walmart is growing sales without having to open new stores.

Dollar General

Dollar General YTD Stock Chart 2019

Can you guess the name of America's fastest growing retailer?. It's Dollar General and the stock is up 47% in 2019. US Same store sales remain robust plus the company returned $267 million in share repurchases and dividends in Q2 2019. Dollar General is the polar opposite of Walmart because they target rural communities with smaller populations across America. These communities get ignored by bigger chains like Walmart and the local customers become loyal to Dollar General. This stock is one of my favorite long term picks.

Target

Target Stock Chart FY 2019

The big box retailer raised revenue and profit outlooks for fiscal year 2019 and achieved strong same store sales growth of 4.5%. Changes to their stores along with faster delivery options helped push the company towards an impress recent quarter.

Unlike other struggling retailers, Target has a strong durable brand , loyal customer base, and wide moat. It's one of the better retail stock buys because I like the growing revenue and strong dividend.

Costco

Unlike the other 4 retailers mentioned, Costco charges their customers an annual membership fee and treats their business like an exclusive members-only club. The company recently expanded into China by opening a new store in Shanghai and got 200,000 members to join.

While ecommerce sales were disappointed in q1 2020, investors will take note of the growth opportunity into China and look forward to revenue increases due to new member signups.

Ross Stores

The discount retailer grew same-store sales 5% in q3 2019 and continues to grow sales at a strong clip. America's largest off-price apparel chain is a cash cow and earnings are steadily rising YOY.

The stock has been on a tear during 2019 and things are looking bright towards 202.

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