Macy's: Healthy 4% Dividend Amid Bump In Comp Sales

Gary Alexander33.59K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryMacy's offers a compelling blend of yield, value, and operational turnaround, with shares down ~15% YTD despite positive comp sales momentum.The 'Bold New Chapter' strategy is driving efficiency by closing underperforming stores, upgrading key locations, and targeting higher-income consumers, resulting in positive comps and improved brand positioning.M trades at a discounted 3.7x EV/FY26 EBITDA and 9.5x FY26 P/E, with a recently raised 4.0% dividend yield and a sustainable 38% payout ratio.I reiterate a Buy rating, seeing more positives than negatives, with the stock's cheap valuation and healthy dividend supporting patience for a potential re-rating. jetcityimage/iStock Editorial via Getty Images With the stock market choppy and short-term interest rates continuing to fade throughout 2026, many investors have increasingly turned to dividend stocks to boost their income portfolios this year. And yet many dividend trades, such as energyThis article was written byGary Alexander33.59K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of M either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.