June 29, 2025 a 07:46 am
TJX: Dividend Analysis - The TJX Companies, Inc.
The TJX Companies, Inc., a leading off-price retailer of apparel and home fashions, exhibits a strong dividend history with a continuous 39 years of dividend payments. Despite a modest dividend yield of approximately 1.30%, the consistent dividend growth highlights the company's commitment to returning value to its shareholders. Such sustainability in dividends makes TJX an attractive choice for income-focused investors looking for stability in uncertain markets.
📊 Overview
TJX operates within the Retail Sector, offering investors a dividend yield of 1.30% with a current dividend per share of 1.46 USD. The company boasts a dividend history of 39 years without any recent cuts or suspensions, showcasing a resilient financial strategy that emphasizes shareholder returns.
| Metric | Value |
|---|---|
| Sector | Retail |
| Dividend Yield | 1.30% |
| Current Dividend Per Share | 1.46 USD |
| Dividend History | 39 years |
| Last Cut or Suspension | None |
📈 Dividend History
The importance of dividend history lies in the demonstration of a company's stability and its ability to generate and distribute profits consistently. TJX’s dividend history is a testament to its robust business model and financial health.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.225 |
| 2024 | 1.4575 |
| 2023 | 1.2925 |
| 2022 | 1.145 |
| 2021 | 1.04 |
🌱 Dividend Growth
Understanding dividend growth is crucial for evaluating potential future income. TJX’s 3-year dividend growth stands at 11.91%, with a 5-year growth rate of 10.49%. Such metrics suggest a stable enhancement of shareholder returns, reflecting TJX's capacity to increase payouts over time.
| Time | Growth |
|---|---|
| 3 years | 11.91% |
| 5 years | 10.49% |
The average dividend growth is 10.49% over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
The payout ratio provides insight into how comfortably a company can maintain its dividend payments from its earnings. TJX displays a prudent EPS-based payout ratio of 34.24%, together with a free cash flow payout ratio of 43.15%. These figures suggest that TJX can comfortably sustain its current dividend payouts.
| Key figure | Ratio |
|---|---|
| EPS-based | 34.24% |
| Free Cash Flow-based | 43.15% |
Both payout ratios demonstrate that the company’s dividends are well-covered, providing confidence in the continuation of dividend payouts.
💼 Cashflow & Capital Efficiency
Examining cashflow and capital efficiency is vital for understanding a company's operational health and its ability to finance dividends.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.18% | 3.88% | 2.75% |
| Earnings Yield | 3.46% | 4.00% | 3.66% |
| CAPEX / Operating Cash Flow | 0.31 | 0.28 | 0.36 |
| Stock-based Compensation / Revenue | 0.32% | 0.30% | 0.24% |
| Free Cash Flow / Operating Cash Flow Ratio | 0.69 | 0.72 | 0.64 |
The stable cash flow ratios highlight TJX’s efficient capital utilization, endorsing its capability to support dividend payments through operations.
📉 Balance Sheet & Leverage Analysis
A prudent leverage strategy ensures financial stability, which is crucial for continued dividend distribution.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.52 | 1.72 | 2.00 |
| Debt-to-Assets | 0.40 | 0.42 | 0.45 |
| Debt-to-Capital | 0.60 | 0.63 | 0.67 |
| Net Debt to EBITDA | 1.15 | 0.99 | 1.30 |
| Current Ratio | 1.18 | 1.21 | 1.21 |
| Quick Ratio | 0.60 | 0.64 | 0.64 |
| Financial Leverage | 3.78 | 4.07 | 4.45 |
The decreasing debt levels and stable liquidity ratios suggest that TJX is strategically managing its leverage, enhancing its financial stability.
✅ Fundamental Strength & Profitability
Strong profitability and efficient operations are vital indicators of a company’s financial health, directly impacting its ability to reward shareholders.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 58.95% | 61.27% | 54.97% |
| Return on Assets | 15.32% | 15.04% | 12.34% |
| Net Margin | 8.63% | 8.25% | 7.00% |
| EBIT Margin | 11.64% | 11.15% | 9.45% |
| EBITDA Margin | 13.60% | 12.93% | 11.22% |
| Gross Margin | 30.60% | 30.00% | 27.61% |
| R&D to Revenue | 0% | 0% | 0% |
TJX's robust profitability metrics indicate strong financial footing, underscoring its capacity to enhance shareholder value through strategic initiatives.
🔄 Price Development
📊 Dividend Scoring System
Below is an assessment of TJX's dividend performance across several key dimensions.
| Criteria | Score | |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 33/40
📝 Rating
In conclusion, The TJX Companies, Inc. offers a solid dividend profile characterized by stability and growth. With excellent scores in continuity and stability, TJX presents as a reliable income stock. Investors seeking a balanced addition to their portfolio could find TJX a compelling option, appealing to those prioritizing steady returns over maximum yield.