Macy's Dividend Looks More Durable Than Kohl's as Retailers Diverge
Macy's reported 2.7% comparable sales growth in its latest quarter, with Bloomingdale's and Bluemercury leading, and management said it was the fifth straight quarter of gains. Kohl's comparable sales slipped 0.9%, store sales fell 2%, and full-year comps are guided flat to down 1.5%. The article concludes Macy's dividend is safer because it has more cash and a payout that has increased since 2021, while Kohl's has cut its dividend twice since 2020 and faces debt reduction needs.
Macy’s latest quarter showed comparable sales up 2.7%, helped by Bloomingdale’s and Bluemercury, and marked a fifth straight period of growth. Its full-year comparable-sales outlook is positive, and the company has about $1.3 billion in cash. Kohl’s, by contrast, recorded a 0.9% comparable-sales decline and a 2% drop in store sales, with full-year comps projected between flat and down 1.5%.
Kohl’s has reduced its dividend twice since 2020, leaving a $0.50 annual payout. It also carries notes with a 10% coupon and may prioritize debt reduction by 2027. Macy’s has raised its payout since reinstating it in 2021, though real-estate monetization proceeds declined. These differences shape the article’s conclusion that Macy’s dividend appears more durable.
Retirees and income-focused investors who depend on quarterly payouts could be most directly affected by this comparison. If Macy’s dividend proves more durable, some households may feel greater income stability, while Kohl’s shareholders may face uncertainty if debt reduction or weaker sales pressure its payout. Retail employees and local communities tied to either chain could also be indirectly affected if financial strain leads to store investment changes, closures, or restructuring. The outcome may influence how savers view dividend safety in a shifting retail sector.