May 27, 2026 a 02:46 am
TJX: Dividend Analysis - The TJX Companies, Inc.
The TJX Companies, Inc. has been a significant player in the retail sector, with a current market cap of $175.95 billion. Their dividend profile exhibits a yield of 1.19%, alongside a rich history of 40 years of consistent dividend payments. Their conservative payout ratios and robust balance sheet provide a foundation for stable investor returns. In light of their dividend growth over the past years, TJX remains a promising candidate for income-oriented portfolios.
📊 Overview
TJX, positioned in the retail sector, offers a dividend yield of 1.19%. With a current dividend per share of $1.64 and a 40-year streak of dividend payments, it exemplifies stability in investor returns. The last recorded instance of a dividend cut or suspension was notably absent, underscoring a commitment to reliable payouts.
| Metric | Value |
|---|---|
| Sector | Retail |
| Dividend Yield | 1.19% |
| Current Dividend Per Share | $1.64 |
| Dividend History | 40 years |
| Last Cut or Suspension | None |
📉 Dividend History
The rich 40-year dividend history of TJX is a testament to its stability and dedication to shareholders. Understanding historical dividend trends aids in projecting future income potential and assessing stability in payouts.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | $0.905 |
| 2025 | $1.650 |
| 2024 | $1.4575 |
| 2023 | $1.2925 |
| 2022 | $1.145 |
📈 Dividend Growth
Assessment of dividend growth patterns allows investors to understand the sustainability of payout increments. For TJX, the 3-year growth is 12.95%, with a 5-year growth averaging at 48.30%, demonstrating consistent upward trends in dividend increments.
| Time | Growth |
|---|---|
| 3 years | 12.95% |
| 5 years | 48.30% |
The average dividend growth is 48.30% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios offer insights into dividend sustainability. TJX's EPS-based payout ratio stands at 31.67%, and the free cash flow-based ratio at 33.09%, indicating conservative but robust dividend policies.
| Key Figure Ratio | Value |
|---|---|
| EPS-based | 31.67% |
| Free Cash Flow-based | 33.09% |
Both payout ratios indicate that TJX retains a significant portion of its earnings and free cash flow for growth and other expenditures, which underpins its dividend stability.
Cashflow & Capital Efficiency
Cashflow and capital efficiency indicators are crucial for understanding a company's operational performance and investment efficiency over time.
| Metric | 2024 | 2025 | 2026 |
|---|---|---|---|
| Free Cash Flow Yield | 3.99% | 2.98% | 2.92% |
| Earnings Yield | 4.11% | 3.46% | 3.26% |
| CAPEX to Operating Cash Flow | 28.43% | 31.36% | 28.47% |
| Stock-based Compensation to Revenue | 0.30% | 0.32% | 0.35% |
| Free Cash Flow / Operating Cash Flow Ratio | 71.57% | 68.64% | 71.53% |
These indicators reveal TJX's effective use of its capital in generating returns and allocating resources efficiently, safeguarding its long-term financial health.
Balance Sheet & Leverage Analysis
The balance sheet strength and leverage metrics offer insights into the financial health and risk exposure of a company, affecting its ability to sustain dividends during volatile periods.
| Metric | 2024 | 2025 | 2026 |
|---|---|---|---|
| Debt-to-Equity | 1.72 | 1.52 | 1.32 |
| Debt-to-Assets | 42.16% | 40.25% | 37.71% |
| Debt-to-Capital | 63.20% | 60.36% | 56.97% |
| Net Debt to EBITDA | 0.99 | 0.97 | 0.85 |
| Current Ratio | 1.21 | 1.18 | 1.14 |
| Quick Ratio | 0.64 | 0.60 | 0.59 |
| Financial Leverage | 4.07 | 3.78 | 3.51 |
Overall, TJX demonstrates strong financial stability with a manageable debt load, reflected in declining debt ratios and prudent leverage management.
Fundamental Strength & Profitability
Understanding the profitability and fundamental strength of a company is vital for evaluating its ability to sustain and grow dividends over time.
| Metric | 2024 | 2025 | 2026 |
|---|---|---|---|
| Return on Equity | 61.27% | 57.95% | 53.92% |
| Return on Assets | 15.04% | 15.32% | 15.36% |
| Margins: Net | 8.25% | 8.63% | 9.10% |
| Margins: EBIT | 11.15% | 11.64% | 12.09% |
| Margins: EBITDA | 12.93% | 13.60% | 14.16% |
| Margins: Gross | 30.00% | 30.60% | 30.96% |
| Research & Development to Revenue | 0% | 0% | 0% |
These results illustrate TJX's competitive operational efficiency and capacity to maintain profitability, vital for continued success and dividend distributions.
📈 Price Development
🗣️ Dividend Scoring System
| Criteria | Points | 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 |
Total Score: 33/40
🗣️ Rating
TJX Companies demonstrates a commendable dividend profile, underpinned by stable growth, strong financial management, and unwavering dividend history. This makes it an attractive option for investors seeking both income and growth potential. With a total score of 33/40, the company is recommended as a reliable dividend-paying stock for long-term portfolios.
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