Dividends4Life: Make the Stores Pay YOU – 3 Retail Stocks to Buy for the Dividends

Many retail stocks have delivered a disappointing year or so of results despite the fact that consumer discretionary stocks on the whole gained 9% in 2015. When it comes to what’s in store for retail stocks in 2016 … there’s little to cheer about. At least so far. Prices are down, which are propping yields up. But while that’s tempting some to go shopping for value, remember: Not every retail stock yielding 3% or more is worth owning. Some are in the dust bin for a reason, and others have a better than 50/50 chance of bankruptcy in the not-too-distant future.

Don’t get caught in a value trap. While there are retail stocks worth a gamble at the moment, you do have to be patient because the volatility that we’ve experienced in the first two weeks of the year is expected to continue for some time given China’s continuing slowdown. If the correction materializes, all bets are off. But assuming this worst-case scenario doesn’t come into play, investors would do well targeting these three retail stocks yielding 3% or more: Buckle Inc (BKE), American Eagle Outfitters (AEO) and Nordstrom, Inc. (JWN).

Source: InvestorPlace

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