Ross Stores (ROST) DIvidends Date & History

Key Takeaways

• ROST pays a modest quarterly dividend of $0.4450 per share, translating to an annualized payout of about $1.78 and a dividend yield of roughly 0.8%.
• The payout ratio is very low, near 25% of earnings, giving the dividend a wide margin of safety and room for future increases.
• Ross Stores has raised its dividend for several consecutive years, with recent annual increases in the high single to low double digits.
• The yield is below the retail-industry average, making ROST better suited to dividend growth investors than to income-focused investors.
• Strong earnings coverage, low cash payout, and a healthy balance sheet support dividend sustainability.

Dividend Overview

Ross Stores, Inc., the off-price retailer behind Ross Dress for Less and dd's DISCOUNTS, is a component of the S&P 500 and Nasdaq 100 and is headquartered in Dublin, California. The company has paid a quarterly cash dividend since 1994 and currently distributes $0.4450 per share each quarter, for an annualized total of approximately $1.78 per share.

At recent share prices, this produces a dividend yield of roughly 0.8%, which is relatively low compared with many income-oriented equities. Ross Stores is best classified as a dividend growth stock with a modest starting yield rather than a high-yield or pure income investment. The company has established a pattern of raising its payout once per year, typically in March, with the most recent increase taking the quarterly dividend from $0.4050 to $0.4450 per share.

Dividend History and Growth

Ross Stores' dividend history reflects a long-term commitment to returning cash to shareholders, though the payout was paused temporarily in 2020 during the early stages of the COVID-19 pandemic. The company resumed payments in 2021 and has since delivered consistent annual increases, rebuilding and then extending its growth streak.

Since 2021, the annual dividend has climbed from $1.14 per share to roughly $1.78 per share on a forward basis, with year-over-year growth rates generally ranging between 8% and 10%. This steady, measured pace of dividend growth aligns with the company's disciplined capital allocation, which also includes a meaningful share repurchase program that bolsters total shareholder returns.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable. Ross Stores maintains a payout ratio of approximately 25% of trailing earnings, meaning it distributes only about one-quarter of its net income as dividends and retains the rest for store expansion, technology investment, and share buybacks.

Coverage is even more comfortable when measured against free cash flow, with cash-based payout estimates in the low-20% range. This wide cushion provides protection during economic downturns, such as the 2020 episode when the company temporarily suspended its dividend to preserve liquidity. The company also carries a conservative balance sheet with modest long-term debt relative to its earnings and cash generation, further supporting the reliability and growth potential of the payout.

Dividend Compared to Industry Peers

Within the off-price and broader retail sector, ROST's dividend yield of about 0.8% sits below the retail-industry median, which is often cited near 2%. Peer TJX, the parent of T.J. Maxx and Marshalls, offers a modestly higher yield around 1.3%, while off-price rival BURL (Burlington Stores) does not currently pay a dividend, reinvesting profits into store growth instead.

Compared with higher-yielding big-box names such as TGT (Target), Ross Stores' yield is comparatively low. However, ROST's payout ratio is among the lowest in the group, suggesting its dividend has more room to grow over time than those of higher-yielding peers with less earnings headroom.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener can also help identify dividend stocks, income-focused investments, trending stocks, and breakout candidates more efficiently than manual screening, making it a practical companion for dividend-focused research. Explore the AI Screener to uncover opportunities that match your investment criteria.

Is This Stock Attractive for Dividend Investors?

Ross Stores is most suitable for dividend growth investors and long-term, total-return-oriented shareholders rather than investors seeking immediate high income. Its sub-1% yield means the stock offers limited current cash flow, but its low payout ratio, disciplined annual increases, and strong free cash flow position it well for compounding dividend growth over time.

Investors who prioritize a growing income stream and capital appreciation may find the combination of a rising dividend, active buybacks, and off-price retail resilience appealing. Conversely, conservative income investors or retirees relying on yield for living expenses may find the payout too small to meet their needs. As with any equity, the dividend is not guaranteed and can be suspended during severe economic stress, as occurred in 2020. Investors should weigh their income requirements and risk tolerance before considering ROST.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations