Why Macy’s (M) could die

The Macy’s brand may not die, but Macy’s as we know it is dying. Macy’s will have to completely transform its business model just to survive.

Macy’s investors enjoyed a dividend yield of 4.13%, an annualized payout of $1.51, and a payout ratio of 38.4% on 8 November 2018. That’s superb for a $37.78 a share stock.
Macy’s is planning a 37.7¢ dividend for January 2, 2019. However, that dividend has not increased since June 2017.

Under these circumstances, Macy’s is a respectable dividend stock, but it is too risky for long-term investment. For instance, I think the Macy’s dividend will soon decrease or disappear.

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