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Dillard's Stock Soars Past Tech Giants
20 Dec, 2025
Summary
- Dillard's stock has risen 54% year-to-date, outperforming major tech companies.
- The company offers a 4.76% dividend yield, significantly higher than its sector median.
- Despite stock gains, Dillard's revenues have declined over the past decade.
Dillard's (DDS), a department store operator founded in 1938 and headquartered in Arkansas, has unexpectedly become a star performer on Wall Street. As of late 2025, the company operates approximately 272 full-line department stores and 28 clearance centers across 30 U.S. states. Its stock has seen a remarkable year-to-date increase of 54%, surpassing the performance of major technology stocks like Broadcom and AMD.
The company's financial appeal is further enhanced by its dividend yield of 4.76%, considerably higher than the sector's average of 1.023%. Dillard's has a consistent track record of raising dividends for 14 consecutive years, supported by a low payout ratio of 2.87%, suggesting ample room for future growth.
Despite this strong stock and dividend performance, Dillard's presents a mixed investment profile. While earnings have grown at a compound annual growth rate of 6.28% over the last decade, revenues have contracted at a CAGR of 0.28%. Recent quarterly reports show modest sales growth, with net sales reaching $1.47 billion in Q3 2025, a 2.8% increase year-over-year, and comparable store sales rising by 3%.
