Full Interview On Retail Stocks With Dividend And ETF Investor Mike Schiemer
Although I have been an entrepreneur for the better part of the last 20 years, I have been investing in stocks for only 5 years. When I was younger I was a big saver that kept most of my money in a low interest paying bank savings account and checking accounts. About ten years ago I worked for one of the world's largest financial services companies and I learned more about the power of dividends, compound, interest, stock splits, diversified funds, foreign stocks, and tech growth stocks.
When bank savings accounts started transitioning to almost non-existent interest rates, even on CDs, it made a lot more sense to invest in stocks and different funds. I accelerated my investing in 2020 when I saw there were many excellent stock bargains and becoming a retail investor was becoming easier as well.
I have owned $TJX for the most part of the last 4 years, sometimes in both of my portfolios (personal and IRA retirement). I have the additional benefit of living in Massachusetts where its headquarters is, and I have often lived within 30 minutes of their HQ building. It is a large diversified company that offers affordable products, has an ecommerce presence, and is recession-resistant unlike some higher price point or luxury retailers.
There are many aspects of #TJX that make it an appealing holding for me. I have years of experience in retail marketing and ecommerce sales, so I understand how profitable these businesses can be when done correctly, even in the modern economy. You often hear that retail is dead, but the best retailers still survive and thrive. TJX is a large cap stock with excellent long term growth and a steady dividend, all things I look for in my holdings. They are constantly posting positive earnings per share and positive cash flow each quarter while other retailers have struggled mightily.
As I mentioned they have very affordable product lines that appeal to most shoppers, making it a smart pick in an economic recession or bear market. They have a strong ecommerce business that is continuing to grow and stay competitive. It is an international company as well with a variety of store brands such as Marshalls, HomeGoods, T.J. Maxx, and HomeSense. Their versatility is crucial in a rapidly changing market with new customer trends because they can easily shift their focus to a more profitable brand, ecommerce vs brick and mortar emphasis, or popular product SKUs if needed.
Like any stock, if this T.J. Maxx company's net profits began to shrink then I would have to reevaluate its future in my portfolios. If $TJX canceled their dividend completely I would also be likely to sell the stock in favor of other options. I greatly appreciate passive income at least quarterly, even if the dividends or distributions are modest like TJX's. And if retail continues to struggle much worse in the face of ecommerce years from now, then I may trim my retailer holdings that don't keep up with their ecommerce channels in 2025.
I have many retail stocks holdings aside from TJX including Wal-Mart, Target, Dollar General, CVS, Walgreens, Nordstrom (may be going private very soon), Macy's, Kohls, Home Depot, Lowe's, 711, and Arko. I am probably leaving some out as well, and I also own many retail-related stocks such as retail products, supermarkets, and retail property REITs. I may add Costco to that mix in the near future, which is another huge low-cost dividend paying retailer, but you can purchase a plethora of excellent retail stocks for less than the price of just 1 share of COST right now in 2024.
I have bought and sold stocks through multiple platforms over the years including Robinhood, Computershare, Fidelity, Merrill Lynch, and even WeBull briefly. I would say Fidelity and Merrill Lynch are the best that I have dealt with, with Fidelity winning out overall in my humble opinion for 2024 and into 2025.
