These 3 Retail Giants Are Quietly Beating the Market With Dividends and Buybacks

The retail sector is not without headwinds, but the Q3 results and recent economic data reveal consumers remain resilient. The question is where they are spending their money—and three retail stocks stand out: TJX Companies (NYSE: TJX), Williams-Sonoma (NYSE: WSM), and Casey’s General Stores (NASDAQ: CASY). These companies are outperforming in a world where performance matters and, more importantly, are driving robust cash flow. 

Strong fundamentals, consistent growth, and disciplined capital returns make them good buy-and-hold stocks now and into 2026. As it stands, the trends suggest these stocks will move higher in the year ahead, providing investors with the opportunity for market-beating total returns, including share price gains, dividends, and the impact of share buybacks on shareholder value. 

TJX Companies: Positioned to Benefit From Price-Conscious Consumers

The TJX Companies is entering the new year from a position of strength. While macroeconomic headwinds are impacting sales for major frontline retailers, they are setting up a favorable environment for TJX.

The company benefits from an ample supply of available, name-brand, current merchandise at a time when consumers are resilient but incredibly price-conscious. The net result is industry-leading 7.5% revenue growth in Q3, improved guidance, and signs of momentum that are likely to carry into 2026. 

TJX Companies' capital return is among the most attractive in the S&P 500, not just in the retail sector or this grouping. The dividend annualizes at over 1% as of late November, with a low payout ratio under 40% and a strong balance sheet that supports future growth. Debt levels are modest, with leverage around 0.2x equity—an equity base that rose by 14.5% year-over-year (YOY) in Q3.

TJX's balance sheet and cash flow allow for share buybacks in addition to the dividend. The buybacks are more substantial, having reduced the share count by 1.3% in the quarter and year-to-date (YTD). 

Williams-Sonoma: Delivers Profitability and Shareholder Returns

Williams-Sonoma’s Q3 earnings report highlighted the quality of its business and the strength of its target market. While many higher-end retailers are struggling with consumers down-branding, Williams-Sonoma sustains growth and strong margins due to the quality it offers.

Results in Q3 include top and bottom-line strength, mid-single-digit growth, and an 18% profit margin, driven by strength across all operating segments and improved guidance. 

Williams-Sonoma’s cash flow and balance sheet highlight its strength. Cash flow supported dividend payments, share buybacks, and balance sheet improvement in Q3, with equity rising 10% YOY. Other critical details include the company’s debt-free status and the aggressive nature of the buybacks.

The share count decreased by 2.8% in the quarter and by nearly 4% YTD, with the pace expected to be sustained in upcoming quarters. The board approved a fresh $1 billion authorization to begin when the current one is depleted. 

Casey’s General Stores: Expands Through Strategic Acquisition

Casey’s General Stores is a must-own quality dividend growth stock executing an aggressive growth strategy. It is using its fortress balance sheet to self-fund growth and has the capacity to return capital while doing so. The 2025 highlights include the incorporation of Fikes’ Texas-based convenience store operations and the growth opportunities they represent.

Not only did revenue grow by 11.5% in calendar Q3 (Casey's FYQ1 2026), but additional gains are expected over time as the company uses the foothold to expand and deepen penetration in the Southwest. 

Casey’s capital return isn’t as robust as TJX's or WSM's, but growth, equity gains, and a healthy stock price uptrend offset the difference. The dividend annualizes to a token 0.4% as of late November, and share repurchases, which were paused to build capital for the Fikes purchases, reduce the count incrementally each quarter.

A critical detail is that shareholder equity improved by 29% following Fike’s acquisition and is expected to continue growing robustly as the network expands. 

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