As high inflation forces the average consumer to prioritize what is necessary over need, many shoppers are cutting back on voluntary spending.
This is due to the decline in purchasing power due to higher consumer goods and energy bills, even though people are buying fewer goods.
One way consumers can counteract higher spending is to shop at their local discount stores to get better bang for their buck. And in times of recession or high inflationary pressures, it’s not uncommon for consumers to venture into discount stores where they can find the same product at a deep discount.
Here are three discounters offering dividends as the potential for a recession increases.
Big Lots Inc BIG offers a dividend yield of 5.57% or $1.20 per share annually when paid quarterly. The company has a mixed track record of increasing its dividends, having not increased it since 2018.
Big lots is principally engaged in the operation of discount retail stores, offering a wide range of merchandise including groceries, consumables, home furnishings, soft furnishings, furniture, electronics and accessories, and seasonal products.
Big Lots had no share repurchases during the quarter and has $159 million remaining as part of its December 2021 $250 million approval.
Ross Stores, Inc. rust offers a dividend yield of 1.43% or $1.24 per share annually through quarterly payments. The company has a decent track record of increasing its dividends, having done so once in the past year.
As of 2021, Ross Stores is a leading American off-price apparel and home furnishings retailer, operating more than 1,920 stores, selling a variety of branded products and aiming to undercut regular retail prices by 20% to 70% .
CEO Barbara Rentler commented, “During the second quarter, we repurchased 2.9 million shares of common stock at a total cost of $235 million. As previously announced, we expect a buyback…
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