Five Best Brick-and-Mortar Retail Stocks to Buy for Dividend Income

The five best brick-and-mortar retail stocks to buy for dividend income include market leaders in specialty, home improvement, discount and restaurant business segments. Those five brick-and-mortar retail stocks to buy for dividend income and share-price appreciation during upcoming holiday shopping season and beyond are expected to grow strongly, according to BofA Securities.

In the specialty retail category, BofA’s No. 1 choice is Bath & Body Works (BBWI), an “undervalued” growth company headquartered in Reynoldsburg, Ohio. Home improvement company Lowe’s (LOW) wields increased negotiating power with suppliers and transportation partners compared to smaller home improvement retailers, according to BofA. BofA’s two top choices in the discount retail sector are Walmart and Target (NYSE: TGT) due to their strong inventory positions, favorable port access, long-term container shipping agreements and chartered vessel capacity, according to BofA. The top restaurant stock of BofA is Starbucks (NASDAQ: SBUX), of Seattle, Washington, whose high gift card sales should spur robust demand.

Source: Dividend Investor

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