TJX Companies (TJX) DIvidends Date & History

Key Takeaways

• Current dividend: $0.425 per share each quarter (annual $1.70), yielding roughly 1.04% based on a $160 share price.
• Payout ratio sits at about 27 % of earnings, indicating ample room for future increases.
• Dividend has risen 27 times in the past 28 years, delivering a 12% CAGR (Compound Annual Growth Rate) over the last five years.
• Free cash flow coverage of the dividend is ~38%, reinforcing sustainability.
• Yield trails most consumer‑cyclical peers, but the growth profile appeals to dividend‑growth investors.

Dividend Overview

The TJX Companies (NYSE:TJX) pays a quarterly cash dividend of $0.425 per share, amounting to an annual dividend of $1.70. With the stock trading around $160, the trailing twelve‑month dividend yield is approximately 1.04%. TJX positions itself as a dividend‑growth stock rather than a high‑yield income play, consistently raising its payout while maintaining a modest yield.

Dividend History and Growth

TJX’s dividend program dates back to the early 1990s and has been increased in 27 of the last 28 years—a record of reliability. The most recent 13% increase announced in April 2024 took the quarterly payout to $0.375, and a subsequent adjustment in early 2026 lifted it to $0.425. Over the past five years, the dividend has grown at a 12% CAGR, outpacing inflation and delivering a 39‑year streak of uninterrupted payments.

Dividend Sustainability and Payout Ratio

With a payout ratio of roughly 27 % (valuation sites) and free‑cash‑flow (FCF) coverage near 38 %, the dividend appears well‑backed by cash generation. TJX’s strong operating cash flow and disciplined capital allocation—highlighted by a $2‑2.5 billion share‑repurchase program for FY 2025—provide additional buffer. The company’s debt remains manageable relative to cash flow, supporting the sustainability of its payouts.

Dividend Compared to Industry Peers

In the consumer‑cyclical sector, TJX’s yield (≈1.04%) sits below peers such as Gap (NYSE:GAP) at 2.64% and Ross Stores (NYSE:ROST) at 0.73%. While the yield is modest, TJX’s dividend growth rate (≈12% CAGR) surpasses most rivals, which typically offer higher yields but slower or stagnant growth.

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Is This Stock Attractive for Dividend Investors?

TJX may suit investors seeking reliable dividend growth rather than high current income. Income‑oriented investors who prioritize yield might look elsewhere, while dividend‑growth and long‑term investors may appreciate TJX’s consistent payout increases, low payout ratio, and strong cash flow. Conservative investors should consider the modest yield but can be reassured by the company’s solid balance sheet and track record of raising dividends even during economic headwinds.

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