The 7 Best Discount Retailers: Finding Value And Dividends Among Bargain Stocks

Discount retail stocks, much like the goods that fill their stores, are on sale.
In case you haven't heard, e-commerce retailers led by Amazon.com (Nasdaq: AMZN) are taking over the world. But in case that doesn't come to fruition, many dividend-paying discount retail stocks could be attractive.
Internet retail is indeed gaining market share from brick-and-mortar retailers, but plenty of retailers with a physical presence will survive the e-commerce onslaught.
Plus, income and value investors may be reluctant to invest in Amazon, which is certainly understandable.
Amazon is inconsistently profitable, the stock trades for a price-to-earnings ratio of nearly 200, and there is little-to-no hope of receiving a dividend from Amazon anytime soon.
As a result, dividend investors may want to consider the following seven discount retail stocks. They are ranked in order of their appeal, based on their business models, valuations, and dividend yields.
#1 Discount Retail Dividend Stock: Target (NYSE: TGT)
Dividend Yield: 4.8%
Target takes the top spot on this list because it is a compelling opportunity on valuation and income potential. Not only does the stock trade for a price-to-earnings ratio of 10, but it also offers a nearly 5% dividend yield.
And, Target recently raised its dividend by 3.3%, marking the 46th consecutive annual dividend hike.
Target is a Dividend Aristocrat, a group of just 51... Read more