Defend Against Fickle Retail With Dividends

Retail stocks are going strong this year, as illustrated by the respective 29% and 24% gains of the Retail SPDR (XRT) and Market Vectors Retail ETF (RTH). Some of the best-performing retail stocks so far in 2013 are ones that remain far off their peaks but have managed at least small comebacks, while other companies that are actually “in” must clear a higher bar.

One way to protect yourself from the volatility and question marks of the retail sector is to pick stocks offering dividends. While the specialty retail sector is hardly known for giant payouts, a few companies yield a decent amount of income that can help investors weather the inevitable storms. First up, we have brand that was all the rage when I was in high school: American Eagle Outfitters (AEO). Guess (GES) has handily topped the market so far in 2013, with impressive 36% gains in its pocket. Kohl’s (KSS) is the newest kid on the dividend block, just starting its payout the year before last.

Source: Investor Place

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