Macy’s Inc (NYSE:M) has seen its share price rise over 15% in the past month and with a dividend yield of just under 6.7% a year, it might still be a good time to buy this high yielding dividend stock. Year-to-date the stock has declined almost 37% and the recent recovery suggests there may be a lot of upside left in the share that was trading over $29 back in May.
With yearly dividend payments totalling $1.51 per share the company is paying out a manageable 68% of its earnings. If the stock continues to climb then the dividend yield will decline so if you’re interested in the stock it may be a good time to buy now before the upside shrinks. The share price is coming off a 52-week low in August and with a price to earnings multiple of a little over 10 it still presents a good value at its current price.
Although the company saw sales decline by 5% in its most recent quarter, net income was up tenfold from a year ago. Macy’s remains a strong retail brand and the company is still generating positive free cash flow.
Picking up a stock that has shown a recovery is generally a safer bet than buying one that is still in a free fall. This is still a company that is posting over $5 billion in revenue and despite any decline it may be seeing in revenue, it shouldn’t be a big concern for investors as the company is in no danger of following other casualties in the retail industry.
