TJX Raises Quarterly Dividend 12.9% to $0.48

The TJX Companies raised its quarterly dividend 12.9% to $0.48 per share from $0.425, setting the annual dividend at $1.92. The first payment at the higher rate traded ex-dividend on May 14, 2026, and the next ex-dividend date is November 12, 2026.

Why the dividend changed

TJX tied the increase to confidence in its ability to expand sales, improve profitability and generate cash while continuing to invest in the business. Chief Executive Officer Ernie Herrman also paired the dividend decision with plans for continued share repurchases, framing both as components of the retailer’s capital-return policy. The board’s action was not connected to a stock split, merger, spin-off or special distribution. TJX dividend announcement

The increase followed a strong fiscal 2026. Comparable sales increased 5%, adjusted diluted earnings per share increased 11% to $4.73, and operating cash flow reached $6.9 billion. TJX ended the year with $6.2 billion of cash and said it remained committed to returning capital while funding near-term and long-term growth. Those results provided the operating backdrop for the higher recurring payment. TJX fiscal 2026 results

Results reported after the increase showed continued business momentum. Second-quarter fiscal 2027 comparable sales increased 4%, while adjusted diluted earnings per share increased 11% to $1.22. Operating cash flow was $2.2 billion, and quarter-end cash was $6.0 billion. TJX raised its full-year adjusted pretax-margin outlook to 12.0% to 12.1% and adjusted earnings guidance to $5.15 to $5.20 per share. The quarter included a temporary benefit from tariff refunds, which the company excluded from those adjusted measures. TJX second-quarter fiscal 2027 results

Dividend track record

The payment history shows a stair-step pattern. TJX paid $0.375 per share with ex-dividend dates of November 14, 2024, and February 13, 2025. The rate moved to $0.425 on May 15, 2025, remained there through February 12, 2026, and then increased to $0.48 for the May 14, 2026, and August 13, 2026, ex-dividend dates.

Annual payments increased from $1.04 in 2021 to $1.15 in 2022, $1.29 in 2023, $1.46 in 2024 and $1.65 in 2025. The respective annual increases were 352.2%, 10.1%, 13.0%, 12.7% and 13.2%. The unusually large 2021 change followed 2020, when TJX made one payment totaling $0.23 after temporarily suspending the dividend amid pandemic uncertainty. TJX fiscal 2021 second-quarter update

The dividend-growth streak stands at 29 years, while the last annual cut was in 1996. The 2020 interruption shows that the payment has not been immune to an extreme operating disruption, but the subsequent annual totals document a sustained return to growth.

Is the dividend covered?

The dividend consumes 33% of earnings. That ratio indicates earnings provide a substantial cushion over the recurring cash requirement and leave room for reinvestment and other capital returns. A free-cash-flow payout ratio is not included in the coverage assessment.

SmarterDividends rates the dividend A, with a safety score of 82. That falls in the “very safe” range of 80-100. The grade reflects strong earnings coverage and a long growth record, while recognizing that even well-covered dividends remain subject to board approval and business conditions.

Yield and valuation

At a share price of $132.06, TJX’s $1.92 annual dividend produces a forward yield of 1.46%. That is below the Consumer Cyclical sector median forward yield of 2.66%, positioning TJX as a lower-yielding company within its sector despite the higher payment.

SmarterDividends estimates fair value at $100.54 and classifies the shares as overvalued. The gap to that estimate is 21% to the downside. The valuation assessment is separate from dividend coverage: the A safety grade addresses payment risk, while fair value compares the share price with an estimate of underlying value.

What to watch

The next immediate dividend milestone is the November 12, 2026, ex-dividend date. Investors must also monitor whether future board declarations maintain the $0.48 quarterly rate.

Operating attention shifts to the fiscal third quarter. TJX has guided for comparable-sales growth of 2% to 3% and adjusted diluted earnings per share of $1.30 to $1.32, excluding an expected tariff-refund benefit. Management has also said Marmaxx performance was improving after that division lagged the company’s other major businesses in the second quarter. TJX second-quarter fiscal 2027 results

Capital demands are another point to follow. TJX plans to accelerate store-opening growth to 4% beginning in fiscal 2028 and raised its long-term target to 7,500 stores. Future results will show how management balances that expansion, inventory investment, share repurchases and the quarterly dividend.