This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Dividend Stocks Itching to Pay You More

Stocks in this article: UPS MMM GPS M LO FDX

The Gap GPS Chart GPS data by YCharts

Apparel firm The Gap (GPS) reported good numbers and an improved outlook in Thursday night's Q3 earnings call, spurring a boost in buying activity this morning. Gap owns a handful of brands in addition to its self-named store chain -- Old Navy, Banana Republic and Athleta are just a few of them. All told, Gap owns more than 3,000 stores in North America, Europe and Japan. The firm franchises another 200 locations in emerging markets like the Middle East and Southeast Asia.

Even though the apparel business is supremely competitive, Gap has done a good job of staying one step ahead of the game. The firm's brand is strong, and it's stayed ahead of consumer fashion tastes by catering to a less volatile demographic: young-to-middle aged professionals whose preferences haven't changed much in the last decade or so. While other brands do step into more fickle consumer groups (like Old Navy's focus on a much younger crowd), the firm approaches those markets cautiously, the same way it's handling international growth.

While Gap owns its domestic stores, the firm opted to franchise its emerging market growth, taking considerable risk off of its balance sheet without precluding the firm from growth opportunities abroad. The firm also took the Great Recession as an opportunity to shore up its finances and restructure -- that's helped shove net margins closer to the double-digit range. Currently the firm pays a 12.5-cent quarterly dividend for a 1.43% yield. That payout looks likely to increase in the next quarter.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs