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On July 23, 2026, Dillard's Inc (DDS) shares fell 4.8%, closing at $560.97. The stock has experienced volatility in the past year, with a 52-week range between

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Our proprietary system currently recommends Dillard's (DDS - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this department store operator a great growth pick right now.

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Dillard's is 0.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 6.3% this year, crushing the industry average, which calls for EPS growth of -0.3%.

Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, Dillard's has an S/TA ratio of 1.67, which means that the company gets $1.67 in sales for each dollar in assets. Comparing this to the industry average of 1.14, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Dillard's looks attractive from a sales growth perspective as well. The company's sales are expected to grow 2.1% this year versus the industry average of 0%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Dillard's. The Zacks Consensus Estimate for the current year has surged 6.2% over the past month.

Bottom LineDillard's has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Dillard's well for outperformance, so growth investors may want to bet on it.

Retail stocks have staged an impressive comeback as resilient consumer spending, improving inventory management, and strong execution continue to drive earnings growth.

Notably, Casey's General Stores (CASY - Free Report) ), Ross Stores (ROST - Free Report) ), and Dillard's (DDS - Free Report) ) are prime examples of such, with each sporting a coveted Zacks Rank #1 (Strong Buy), reflecting analysts' growing optimism and positive earnings estimate revisions.

Let's take a closer look at why analyst sentiment has turned bullish on these three highly ranked retail stocks. 

Casey's Stellar Expansion ContinuesCasey's General Stores has been one of the standout performers in the convenience store space. The company operates nearly 3,000 stores across the Midwest and continues to benefit from strong demand for prepared foods, beverages, and fuel.

The retailer has consistently delivered better-than-expected quarterly results, driven by robust inside sales and expanding profit margins. Casey's ongoing store expansion strategy and acquisition-driven growth have further strengthened its competitive position.

Analysts have become increasingly bullish on the company’s earnings outlook, with Casey’s benefiting from steady consumer demand in smaller communities where it maintains a dominant presence.

With strong execution, growing foodservice sales, and continued expansion opportunities, Casey's appears well-positioned to keep rewarding shareholders.

Ross is Benefiting from the Off-Price Retail TrendRoss Stores remains one of the biggest beneficiaries of consumers seeking value amid an uncertain economic backdrop. The off-price retailer continues to attract bargain-hunting shoppers through its treasure-hunt shopping experience and discounted brand-name apparel merchandise.

The company has demonstrated impressive resilience despite inflationary pressures and changing consumer spending habits. Strong traffic trends and disciplined inventory management have helped Ross maintain healthy profitability.

Wall Street has responded by raising earnings estimates and Ross still has a significant runway for store expansion across the United States.

As consumers remain focused on value, Ross appears well-positioned to capitalize on ongoing demand for discounted apparel, home goods, and accessories.

Dillard's Keeps Generating Strong Cash FlowDepartment store operator Dillard's has quietly emerged as one of the strongest performers in the retail sector over the last several years. The company has distinguished itself through disciplined inventory management, expense controls, and a focus on profitability.

Unlike many traditional department store peers, Dillard's has consistently delivered strong margins and impressive free cash flow generation. Dillard's has also used its financial strength to reward shareholders through dividends and share repurchases.

Despite operating in a competitive retail landscape, Dillard's continues to benefit from a loyal customer base and premium merchandise offerings.

With solid fundamentals and shareholder-friendly capital allocation, Dillard's could continue outperforming expectations.

Bottom LineInvestors searching for retail stocks backed by positive earnings estimate revisions may want to consider Casey's General Stores, Ross Stores, and Dillard's. With earnings expectations moving higher, these retailers could have intriguing upside, making them attractive candidates for growth-oriented investors looking for strength in the retail sector.

On June 15, 2026, Dillard's Inc DDS shares fell 7.2% to $565.78, continuing a downward trend reflected in a 7.6% drop over the past week. The stock has experienced volatility over the past year, with a 52-week high of $741.98 and a low of $396.99.

GF Value™ verdict: Current price is $565.78, which is 30.2% above the GF Value™ estimate of $434.60.GF Score™: 82/100 indicates a strong overall evaluation based on key financial metrics.Most notable signal: Financial strength rated at 8/10 suggests a solid financial position. Is DDS Overvalued or Undervalued? According to the GF Value™, Dillard's Inc DDS shares are currently overvalued, trading at a price of $565.78 compared to an estimated fair value of $434.60. This implies a margin of safety of 30.2%, indicating that the stock may not provide a favorable risk-reward ratio at the current price. The GF Valuation label of "Modestly Overvalued" further supports this assessment, suggesting that while the company is performing well, its current valuation might not be justified by its financials.

Being overvalued presents a risk to potential investors, as the price could correct downwards if the market adjusts to align more closely with the intrinsic value. This scenario highlights the importance of conducting thorough research and analysis before making investment decisions.

How Does DDS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 13.4x 9.1x Forward P/E 15.2x The current P/E (TTM) of 13.4x is significantly above the 5-year median P/E of 9.1x, reflecting a 47% premium compared to its historical average. Additionally, the forward P/E of 15.2x suggests that the market expects further growth, yet this elevated valuation agrees with the GF Value™ verdict of overvaluation. Investors should consider this context when evaluating the stock's potential for future performance.

What Does DDS's GF Score™ Tell Us? Metric Rating GF Score™ 82/100 Financial Strength 8/10 Profitability 8/10 Growth 6/10 Valuation 5/10 Momentum 7/10 The GF Score™ of 82/100 indicates a robust overall assessment of Dillard's Inc's financial health and operational performance. With high scores in Financial Strength and Profitability (8/10), the company showcases its ability to manage its resources effectively and generate profits. However, the Valuation score of 5/10 suggests that the current market price may not be justified, aligning with the previous conclusion of overvaluation. The Growth score of 6/10 indicates moderate potential for future expansion, while the Momentum score of 7/10 reflects positive recent performance trends.

What Are Insiders Doing with DDS Stock? In the past three months, insider activity has shown a net selling of $0.2 million with no reported buying. This trend of selling could suggest a lack of confidence among insiders regarding the current valuation or future growth prospects of the company. Such patterns may be observed with caution as they can influence market sentiment and investor perception.

What This Means for Investors Based on the analysis of the GF Value™, Dillard's Inc DDS is currently overvalued. With a GF Value™ estimate of $434.60 compared to the current price of $565.78, there is a significant risk that the stock could face downward pressure if market conditions shift. Investors should closely monitor the company's performance and market developments going forward.

For the complete analysis, visit the Dillard's Inc DDS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is DDS's GF Score™?

Dillard's Inc DDS has a GF Score™ of 82/100, indicating a strong overall evaluation based on key financial metrics.

Is DDS overvalued or undervalued?

According to the GF Value™ estimate, DDS is overvalued with a current price of $565.78 compared to a fair value of $434.60, representing a 30.2% overvaluation.

What is DDS's P/E ratio?

The P/E (TTM) ratio for DDS is currently 13.4x, which is significantly higher than its 5-year median P/E of 9.1x, supporting the conclusion of overvaluation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Posted by Defense World Staff on Apr 24th, 2026

Asset Management One Co. Ltd. reduced its stake in shares of Dillard’s, Inc. (NYSE:DDS – Free Report) by 33.5% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 2,548 shares of the company’s stock after selling 1,281 shares during the period. Asset Management One Co. Ltd.’s holdings in Dillard’s were worth $1,611,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in DDS. Balyasny Asset Management L.P. acquired a new stake in shares of Dillard’s during the third quarter worth $31,813,000. Man Group plc lifted its stake in shares of Dillard’s by 464.3% during the third quarter. Man Group plc now owns 38,806 shares of the company’s stock worth $23,846,000 after buying an additional 31,929 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Dillard’s by 75.6% during the first quarter. Goldman Sachs Group Inc. now owns 66,142 shares of the company’s stock worth $23,687,000 after buying an additional 28,468 shares during the period. Gotham Asset Management LLC lifted its stake in shares of Dillard’s by 52.8% during the third quarter. Gotham Asset Management LLC now owns 66,519 shares of the company’s stock worth $40,875,000 after buying an additional 22,991 shares during the period. Finally, Two Sigma Investments LP lifted its stake in shares of Dillard’s by 362.4% during the third quarter. Two Sigma Investments LP now owns 24,625 shares of the company’s stock worth $15,132,000 after buying an additional 19,299 shares during the period. 67.15% of the stock is currently owned by institutional investors and hedge funds.

Dillard’s Trading Down 0.8% Shares of Dillard’s stock opened at $603.89 on Friday. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.65 and a quick ratio of 1.31. The firm has a fifty day moving average price of $600.45 and a 200 day moving average price of $623.84. Dillard’s, Inc. has a 1 year low of $316.79 and a 1 year high of $741.97. The stock has a market cap of $9.43 billion, a PE ratio of 16.59 and a beta of 1.27.

Dillard’s (NYSE:DDS – Get Free Report) last released its quarterly earnings data on Tuesday, February 24th. The company reported $13.05 earnings per share for the quarter, beating analysts’ consensus estimates of $9.98 by $3.07. Dillard’s had a net margin of 8.81% and a return on equity of 27.55%. The company had revenue of $1.99 billion during the quarter, compared to analysts’ expectations of $2.03 billion. During the same quarter in the previous year, the company earned $13.48 earnings per share. The firm’s revenue for the quarter was down 3.0% on a year-over-year basis. Equities research analysts predict that Dillard’s, Inc. will post 32.52 earnings per share for the current year.

Dillard’s Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Monday, May 4th. Shareholders of record on Tuesday, March 31st will be issued a $0.30 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $1.20 dividend on an annualized basis and a yield of 0.2%. Dillard’s’s payout ratio is presently 3.30%.

Analyst Ratings Changes Several equities research analysts have recently commented on DDS shares. Telsey Advisory Group lowered their price objective on shares of Dillard’s from $700.00 to $650.00 and set a “market perform” rating for the company in a research note on Wednesday, February 25th. Zacks Research downgraded shares of Dillard’s from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 23rd. JPMorgan Chase & Co. reduced their target price on shares of Dillard’s from $524.00 to $449.00 and set an “underweight” rating for the company in a report on Wednesday, February 25th. Weiss Ratings reissued a “hold (c)” rating on shares of Dillard’s in a report on Wednesday, January 21st. Finally, Wall Street Zen cut shares of Dillard’s from a “buy” rating to a “hold” rating in a report on Saturday, March 28th. Three equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Dillard’s currently has a consensus rating of “Reduce” and an average target price of $519.67.

Get Our Latest Stock Report on DDS

Dillard’s Profile (Free Report)

Dillard’s, Inc (NYSE:DDS), headquartered in Little Rock, Arkansas, is a U.S.-based department store chain founded by William T. Dillard in 1938. Over more than eight decades of operation, the company has grown from a single store in Nashville, Arkansas, to a prominent retailer with a national footprint. Dillard’s equity is publicly traded on the New York Stock Exchange under the ticker DDS.

The company operates approximately 280 departmental stores across 29 states, offering a broad assortment of merchandise that includes men’s and women’s apparel, accessories, cosmetics, footwear, and home furnishings.

Featured Stories Five stocks we like better than Dillard’s

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Posted by Defense World Staff on Apr 26th, 2026

Abacus FCF Advisors LLC grew its holdings in Dillard’s, Inc. (NYSE:DDS – Free Report) by 37.3% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 11,741 shares of the company’s stock after acquiring an additional 3,191 shares during the period. Abacus FCF Advisors LLC owned 0.08% of Dillard’s worth $7,119,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of the business. Quarry LP bought a new stake in Dillard’s in the third quarter worth $33,000. EverSource Wealth Advisors LLC boosted its stake in shares of Dillard’s by 790.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 89 shares of the company’s stock worth $37,000 after acquiring an additional 79 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Dillard’s by 110.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 139 shares of the company’s stock valued at $50,000 after acquiring an additional 73 shares during the last quarter. CoreCap Advisors LLC acquired a new position in shares of Dillard’s during the 3rd quarter valued at about $52,000. Finally, BI Asset Management Fondsmaeglerselskab A S bought a new position in shares of Dillard’s in the 2nd quarter valued at approximately $55,000. Institutional investors and hedge funds own 67.15% of the company’s stock.

Dillard’s Stock Performance Shares of NYSE DDS opened at $596.90 on Friday. Dillard’s, Inc. has a 12 month low of $324.06 and a 12 month high of $741.97. The company has a market cap of $9.32 billion, a P/E ratio of 16.39 and a beta of 1.27. The business’s 50 day moving average is $599.49 and its two-hundred day moving average is $623.80. The company has a quick ratio of 1.31, a current ratio of 2.65 and a debt-to-equity ratio of 0.24.

Dillard’s (NYSE:DDS – Get Free Report) last posted its quarterly earnings data on Tuesday, February 24th. The company reported $13.05 earnings per share for the quarter, beating the consensus estimate of $9.98 by $3.07. Dillard’s had a return on equity of 27.55% and a net margin of 8.81%.The company had revenue of $1.99 billion during the quarter, compared to analysts’ expectations of $2.03 billion. During the same period in the prior year, the business earned $13.48 earnings per share. Dillard’s’s revenue for the quarter was down 3.0% compared to the same quarter last year. On average, equities analysts expect that Dillard’s, Inc. will post 32.52 EPS for the current year.

Dillard’s Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Monday, May 4th. Investors of record on Tuesday, March 31st will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $1.20 dividend on an annualized basis and a yield of 0.2%. Dillard’s’s dividend payout ratio (DPR) is 3.30%.

Wall Street Analyst Weigh In Several equities analysts have commented on DDS shares. Zacks Research downgraded Dillard’s from a “strong-buy” rating to a “hold” rating in a report on Monday, February 23rd. JPMorgan Chase & Co. reduced their price objective on shares of Dillard’s from $524.00 to $449.00 and set an “underweight” rating for the company in a research note on Wednesday, February 25th. Telsey Advisory Group decreased their price objective on shares of Dillard’s from $700.00 to $650.00 and set a “market perform” rating for the company in a report on Wednesday, February 25th. Wall Street Zen lowered shares of Dillard’s from a “buy” rating to a “hold” rating in a research note on Saturday, March 28th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Dillard’s in a research report on Wednesday, January 21st. Three investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $519.67.

Get Our Latest Stock Report on Dillard’s

Dillard’s Company Profile (Free Report)

Dillard’s, Inc (NYSE:DDS), headquartered in Little Rock, Arkansas, is a U.S.-based department store chain founded by William T. Dillard in 1938. Over more than eight decades of operation, the company has grown from a single store in Nashville, Arkansas, to a prominent retailer with a national footprint. Dillard’s equity is publicly traded on the New York Stock Exchange under the ticker DDS.

The company operates approximately 280 departmental stores across 29 states, offering a broad assortment of merchandise that includes men’s and women’s apparel, accessories, cosmetics, footwear, and home furnishings.

Featured Articles Five stocks we like better than Dillard’s Want to see what other hedge funds are holding DDS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Dillard’s, Inc. (NYSE:DDS – Free Report).

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May 14, 2026 06:50 ET  | Source: Dillard's, Inc.

LITTLE ROCK, Ark., May 14, 2026 (GLOBE NEWSWIRE) -- Dillard’s, Inc. (NYSE: DDS) (the “Company” or “Dillard’s”) announced operating results for the 13 weeks ended May 2, 2026. This release contains certain forward-looking statements. Please refer to the Company’s cautionary statements included below under “Forward-Looking Information.”

Dillard’s Chief Executive Officer William T. Dillard, II commented, “We are pleased to report a good start to 2026 with a profitable 3% sales growth supported by an increased 45.8% retail gross margin. We continue to focus on motivating our customer with newness in our merchandise assortment.”

Highlights of the First Quarter (compared to the prior year first quarter):

Total retail sales increased 3% Comparable store sales increased 3% Net income of $250.6 million compared to $163.8 million Earnings per share of $16.04 compared to $10.39Retail gross margin of 45.8% of sales compared to 45.5% of salesOperating expenses were $444.0 million (28.3% of sales) compared to $421.7 million (27.6% of sales)Ending inventory increased 3%
First Quarter Results

Dillard’s reported net income for the 13 weeks ended May 2, 2026 of $250.6 million, or $16.04 per share, compared to $163.8 million, or $10.39 per share, for the 13 weeks ended May 3, 2025. Included in net income for the 13 weeks ended May 2, 2026 is a pre-tax gain on litigation settlement, net of legal fees, of $104.1 million ($79.6 million after tax or $5.10 per share) related to the Company’s favorable settlement of a long-standing lawsuit involving payment card interchange fees.

Sales

Net sales for the 13 weeks ended May 2, 2026 and May 3, 2025 were $1.568 billion and $1.529 billion, respectively. Net sales includes the operations of the Company’s construction business, CDI Contractors, LLC (“CDI”).

Total retail sales (which excludes CDI) for the 13 weeks ended May 2, 2026 and May 3, 2025 were $1.518 billion and $1.468 billion, respectively. Total retail sales increased 3% for the 13-week period ended May 2, 2026 compared to the 13-week period ended May 3, 2025. Sales in comparable stores for the same period increased 3%.

All merchandise categories reported sales increases compared to the prior year first quarter. Sales increased significantly in home and furniture, ladies’ accessories and lingerie and shoes. Sales in men’s apparel and accessories, juniors’ and children’s apparel and ladies’ apparel increased moderately while sales in cosmetics increased slightly during the quarter.

Gross Margin

Consolidated gross margin for the 13 weeks ended May 2, 2026 was 44.5% of sales compared to 43.9% of sales for the 13 weeks ended May 3, 2025.

Retail gross margin for the 13 weeks ended May 2, 2026 was 45.8% of sales compared to 45.5% of sales for the 13 weeks ended May 3, 2025. Compared to the prior year first quarter, retail gross margin increased moderately in shoes and increased slightly in ladies’ accessories and lingerie. Retail gross margin was unchanged (as a percentage) in juniors’ and children’s apparel, cosmetics and men’s apparel and accessories. Retail gross margin decreased slightly in ladies’ apparel and decreased moderately in home and furniture.

Selling, General & Administrative Expenses

Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended May 2, 2026 were $444.0 million (28.3% of sales) and $421.7 million (27.6% of sales) for the 13 weeks ended May 3, 2025. The increase is largely due to higher payroll and payroll-related expenses.

Store Information

During the quarter, the Company opened a 160,000 square foot location at The Mall at Fairfield Commons in Beavercreek, Ohio. The Company operates 272 Dillard’s stores, including 28 clearance centers, spanning 30 states (totaling 46.1 million square feet) and an Internet store at dillards.com.

Dillard’s, Inc. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(In Millions, Except Per Share Data)             13 Weeks Ended  May 2, 2026 May 3, 2025     % of    % of     Net    Net  Amount Sales Amount SalesNet sales $1,568.4  100.0% $1,528.9  100.0%Service charges and other income  20.2  1.3   18.1  1.2    1,588.6  101.3   1,547.0  101.2            Cost of sales  870.4  55.5   857.7  56.1 Selling, general and administrative expenses  444.0  28.3   421.7  27.6 Depreciation and amortization  43.3  2.8   44.5  2.9 Rentals  3.9  0.2   4.6  0.3 Interest and debt (income) expense, net  (0.7) (0.0)  (0.8) (0.1)Other expense  5.0  0.3   5.7  0.4 Gain on litigation settlement  104.1  6.6   —  — Gain on disposal of assets  0.2  0.0   0.1  0.0 Income before income taxes and equity in earnings of joint ventures  327.0  20.9   213.7  14.0 Income taxes  76.7     49.9   Equity in earnings of joint ventures  0.3     —   Net income $250.6  16.0% $163.8  10.7%           Basic and diluted earnings per share $16.04    $10.39   Basic and diluted weighted average shares outstanding  15.6     15.8    Dillard’s, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In Millions)         May 2, May 3,  2026 2025Assets      Current assets:      Cash and cash equivalents $1,157.7 $900.5Accounts receivable  47.1  56.9Short-term investments  259.7  258.5Merchandise inventories  1,506.5  1,469.3Other current assets  76.1  82.9Total current assets  3,047.1  2,768.1       Property and equipment, net  884.7  976.0Operating lease assets  33.9  32.5Deferred income taxes  78.7  71.3Other assets  93.4  59.1       Total assets $4,137.8 $3,907.0       Liabilities and stockholders’ equity      Current liabilities:      Trade accounts payable and accrued expenses $1,081.4 $1,056.7Current portion of long-term debt  96.0  —Current portion of operating lease liabilities  9.4  10.8Federal and state income taxes  100.5  79.3Total current liabilities  1,287.3  1,146.8       Long-term debt  225.7  321.6Operating lease liabilities  24.3  21.5Other liabilities  374.9  359.2Subordinated debentures  200.0  200.0Stockholders’ equity  2,025.6  1,857.9       Total liabilities and stockholders’ equity $4,137.8 $3,907.0 Dillard’s, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In Millions)         13 Weeks Ended  May 2, May 3,  2026
 2025
Operating activities:      Net income $250.6  $163.8 Adjustments to reconcile net income to net cash provided by operating activities:      Depreciation and amortization of property and other deferred costs  43.7   44.9 Gain on disposal of assets  (0.2)  (0.1)Accrued interest on short-term investments  (2.2)  (3.2)Changes in operating assets and liabilities:      Increase in accounts receivable  (7.3)  (1.2)Increase in merchandise inventories  (305.4)  (297.3)(Increase) decrease in other current assets  (4.1)  10.6 (Increase) decrease in other assets  (0.6)  1.1 Increase in trade accounts payable and accrued expenses and other liabilities  313.6   263.6 Increase in income taxes  75.9   50.4 Net cash provided by operating activities  364.0   232.6        Investing activities:      Purchase of property and equipment and capitalized software  (17.2)  (16.8)Proceeds from disposal of assets  0.2   0.2 Proceeds from insurance  —   1.5 Purchase of short-term investments  (258.5)  (212.4)Proceeds from maturities of short-term investments  212.4   282.8 Net cash (used in) provided by investing activities  (63.1)  55.3        Financing activities:      Cash dividends paid  (4.7)  (4.0)Purchase of treasury stock  —   (98.0)Issuance cost of line of credit  —   (3.3)Net cash used in financing activities  (4.7)  (105.3)       Increase in cash and cash equivalents  296.2   182.6 Cash and cash equivalents, beginning of period  861.5   717.9 Cash and cash equivalents, end of period $1,157.7  $900.5        Non-cash transactions:      Accrued capital expenditures $6.2  $7.6 Accrued purchase of treasury stock and excise taxes  —   1.0 Lease assets obtained in exchange for new operating lease liabilities  0.3   1.8           Estimates for 2026

The Company is providing the following estimates for certain financial statement items for the 52-week period ending January 30, 2027 based upon current conditions. Actual results may differ significantly from these estimates as conditions and factors change - See “Forward-Looking Information.”

  In Millions  2026
 2025
  Estimated ActualDepreciation and amortization $175  $179 Rentals  18   19 Interest and debt (income) expense, net  (5)  (6)Capital expenditures  130   93           Forward-Looking Information

This report contains certain forward-looking statements. The following are or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995: (a) statements including words such as “may,” “will,” “could,” “should,” “believe,” “expect,” “future,” “potential,” “anticipate,” “intend,” “plan,” “estimate,” “continue,” or the negative or other variations thereof; (b) statements regarding matters that are not historical facts; and (c) statements about the Company’s future occurrences, plans and objectives, including those statements under the heading “Estimates for 2026” regarding certain financial statement items for the 52-week period ended January 30, 2027. The Company cautions that forward-looking statements contained in this report are based on estimates, projections, beliefs and assumptions of management and information available to management at the time of such statements and are not guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise. Forward-looking statements of the Company involve risks and uncertainties and are subject to change based on various important factors. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements made by the Company and its management as a result of a number of risks, uncertainties and assumptions. Representative examples of those factors include (without limitation) general retail industry conditions and macro-economic conditions including inflation, economic recession and changes in traffic at malls and shopping centers; economic and weather conditions for regions in which the Company’s stores are located and the effect of these factors on the buying patterns of the Company’s customers, including the effect of changes in prices and availability of oil and natural gas; the availability of and interest rates on consumer credit; the impact of competitive pressures in the department store industry and other retail channels including specialty, off-price, discount and Internet retailers; changes in the Company’s ability to meet labor needs amid nationwide labor shortages and an intense competition for talent; changes in consumer spending patterns, debt levels and their ability to meet credit obligations; high levels of unemployment; changes in tax legislation; trade disputes and changes in trade policies including the imposition (or threat) of new or increased duties, taxes, tariffs and other charges impacting our products or supply chain; changes in legislation and governmental regulations; adequate and stable availability and pricing of materials, production facilities and labor from which the Company sources its merchandise; changes in operating expenses, including employee wages, commission structures and related benefits; system failures or data security breaches; inability to effectively utilize advancements in technology, including artificial intelligence; possible future acquisitions of store properties from other department store operators; the continued availability of financing in amounts and at the terms necessary to support the Company’s future business; fluctuations in SOFR and other base borrowing rates; potential disruption from terrorist activity and the effect on ongoing consumer confidence; epidemic, pandemic or public health issues and their effects on public health, our supply chain, the health and well-being of our employees and customers and the retail industry in general; potential disruption of international trade and supply chain efficiencies; global conflicts (including the ongoing conflicts in the Middle East and Ukraine) and the possible impact on consumer spending patterns and other economic and demographic changes of similar or dissimilar nature, and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, particularly those set forth under the caption “Item 1A, Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

CONTACT:
Dillard’s, Inc.
Julie J. Guymon
501-376-5965
[email protected]

U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining around 200 points on Thursday.

The Dow traded up 0.68% to 50,031.50 while the NASDAQ gained 0.85% to 26,625.71. The S&P 500 also rose, gaining, 0.70% to 7,497.13.

Leading and Lagging Sectors

Information technology shares jumped by 0.9% on Thursday.

In trading on Thursday, materials stocks fell by 0.5%.

Top Headline

Dillard’s Inc (NYSE:DDS) shares gained around 3% on Thursday as the company reported upbeat earnings for the first quarter.

The company posted quarterly earnings of $16.04 per share which beat the analyst consensus estimate of $10.37 per share. The company reported quarterly sales of $1.568 billion which beat the analyst consensus estimate of $1.555 billion.

Equities Trading UP
           

Equities Trading DOWN

Commodities

In commodity news, oil traded down 0.1% to $100.97 while gold traded down 0.4% at $4,689.10.

Silver traded down 4.9% to $85.010 on Thursday, while copper fell 1.2% to $6.6000.

Euro zone

European shares were higher today. The eurozone's STOXX 600 rose 0.5%, while Spain's IBEX 35 Index rose 0.7%. London's FTSE 100 rose 0.1%, Germany's DAX rose 1%, while France's CAC 40 gained 0.6%.

Asia Pacific Markets

Asian markets closed mixed on Thursday, with Japan's Nikkei 225 falling 0.98%, Hong Kong's Hang Seng Index gaining 0.002%, China's Shanghai Composite dipping 1.52% and India's BSE Sensex gaining 1.06%

Economics

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Key Takeaways DDS Q1 earnings jumped 54.4% as sales rose 2.6% and comparable-store sales increased 3%.Dillard's gross margin improved to 44.5% as all merchandise categories posted year-over-year gains.DDS operating cash flow climbed to $364M as the company raised fiscal 2026 capital spending plans. Dillard's Inc. (DDS - Free Report) posted first-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Also, the company’s sales and earnings increased year over year. Results reflected higher store productivity, with comparable store sales (comps) increasing 3% and management pointing to newness in the merchandise assortment as a key catalyst for demand. Our model had anticipated comps to rise 1.2% for the first quarter.

The company reported first-quarter fiscal 2026 earnings of $16.04 per share, which grew 54.4% from $10.39 in the year-ago quarter and beat the Zacks Consensus Estimate of $10.13. Net sales rose 2.6% year over year to $1.57 billion and surpassed the consensus mark of $1.54 billion. Dillard’s recorded a pre-tax gain of $104.1 million, net of legal fees, associated with the settlement of a long-standing lawsuit related to payment card interchange fees.

Retail sales improved 3% year over year, with the company noting that all merchandise categories posted gains compared with the prior-year period. The strongest momentum was seen in home and furniture, ladies’ accessories and lingerie, and shoes, while sales in men’s apparel and accessories, juniors’ and children’s apparel and ladies’ apparel rose moderately. Sales in cosmetics grew slightly in the quarter.

During the quarter, Dillard’s introduced a 160,000-square-foot location at The Mall at Fairfield Commons in Beavercreek, OH, expanding its presence in that market. Overall, the company operated 272 Dillard’s stores, including 28 clearance centers, across 30 states.

DDS’ Margins and ExpensesProfitability improved on the merchandise side, with consolidated gross margin rising 60 basis points (bps) to 44.5% from 43.9% in the year-ago period. The retail gross margin rate increased 30 bps to 45.8% from 45.5%, signaling modest improvement in merchandise margin and pricing dynamics. We anticipated a 60-bps contraction in consolidated gross margin.

By category, Dillard’s indicated that retail gross margin rose moderately in shoes and slightly in ladies’ accessories and lingerie. Margin rates were unchanged in juniors’ and children’s apparel, cosmetics, and men’s apparel and accessories, while ladies’ apparel and home and furniture posted slight to moderate declines.

Consolidated selling, general and administrative expenses (operating expenses) were $444 million, rising 5.3% from $421.7 million in the prior-year quarter, with the increase largely attributed to higher payroll and payroll-related expenses. As a percentage of sales, operating expenses rose 70 bps to 28.3% compared with 27.6% a year ago. We had expected a 150-bps increase in operating expenses, as a percentage of sales.

Dillard’s Financial DetailsDillard’s ended the quarter with cash and cash equivalents of $1.16 billion, up from $900.5 million a year ago, while short-term investments were essentially flat at $259.7 million. Merchandise inventories increased to $1.51 billion from $1.47 billion, consistent with management’s comment that ending inventory was up 3%.

On the liability side, the company carried $96 million in current maturities of long-term debt and $225.7 million in long-term debt. Stockholders’ equity increased to $2.03 billion from $1.86 billion a year ago.

Cash generation strengthened during the quarter. Net cash provided by operating activities rose to $364 million from $232.6 million in the prior-year period.

Dillard’s Outlook for FY26Looking ahead, Dillard’s reiterated its fiscal 2026 outlook. The company still expects depreciation and amortization of $175 million, rentals of $18 million, and net interest and debt income of $5 million for the 52-week period ending Jan. 30, 2027. Capital expenditures are projected at $130 million, up from $93 million in the prior year.

Shares of the Zacks Rank #3 (Hold) company have lost 17.6% in the past three months compared with the industry's 5.1% decline.

Key Picks in the Retail Space Levi Strauss & Co. (LEVI - Free Report) , which is a designer and marketer of jeans, casual wear and related accessories, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LEVI delivered a trailing four-quarter earnings surprise of 9.8%, on average. The Zacks Consensus Estimate for Levi Strauss’ current financial-year sales indicates growth of 10.3% from the year-ago number.

Kohl's Corporation (KSS - Free Report) , which is a department store chain, currently carries a Zacks Rank of 2.

KSS delivered a trailing four-quarter earnings surprise of 72.3%, on average. The Zacks Consensus Estimate for KSS’ current financial-year sales indicates a drop of 1% from the year-ago number.

American Eagle Outfitters (AEO - Free Report) , which is a retailer of casual apparel, accessories and footwear, currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for AEO’s current financial-year sales is expected to rise 5.1% from the corresponding year-ago reported figure. AEO delivered a trailing four-quarter earnings surprise of 37.6%, on average.

Dillard's Today

$614.22 +31.67 (+5.44%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$394.70▼

$741.97Dividend Yield0.20%

P/E Ratio14.60

Price Target$521.33

Dillard’s Inc. NYSE: DDS stock surged after the company posted a massive first-quarter earnings beat, but the rally quickly faded as investors realized much of the upside was tied to a litigation settlement. Shares ultimately ended the session only slightly higher, as investors appeared more cautious after digging into the report.

Some enthusiasm may also have been tempered by the company’s incredible multi-year run. Shares, which had climbed more than 270% over the past five years, began to pull back from their all-time highs as investors reassessed the stock following the massive rally.

Get Dillard's alerts:

Q1 Earnings Get a Big Boost From Legal SettlementIt’s easy to see why Dillard’s stock rallied immediately following the report. The department store chain reported Q1 earnings on May 14 of $16.04 per share, significantly higher than year-ago earnings of $10.39 and $5.91 above Wall Street’s expectations of $10.13 per share.

Earnings received a major boost from a litigation settlement, which added $5.10 per share after taxes. The company said the settlement followed a long-standing lawsuit regarding payment card interchange fees.

Revenue for the quarter came in at $1.59 billion, up 2.7% from the prior year and topping estimates by nearly $34 million. Meanwhile, same-store sales rose 3%, while margins improved.

Operating expenses increased during the quarter, however, largely due to higher payroll and payroll-related expenses. Inventory rose 3%.

Merchandise Sales Increased Across CategoriesDillard’s said year-over-year sales increases were reported across all merchandise categories, with significant gains in home and furniture, ladies’ accessories, lingerie, and shoes. The company saw more moderate increases in men’s apparel and accessories, juniors’ and children’s apparel, and ladies’ apparel. Cosmetics sales increased slightly.

Dillard’s Chief Executive William T. Dillard II commented on the results in the company’s press release, saying, “We are pleased to report a good start to 2026 with a profitable 3% sales growth supported by an increased 45.8% retail gross margin. We continue to focus on motivating our customer with newness in our merchandise assortment.”

Dillard’s offered limited forward guidance for 2026, including projected capital expenditures of roughly $130 million, up from $93 million last year, and depreciation and amortization expense of about $175 million, down slightly from $179 million the previous year.

Stock’s Rally Quickly Lost SteamAt first glance, investors seemed thrilled by the earnings report, with shares surging in premarket trading and climbing further at the open. The stock, which had closed the previous session below $532, jumped to nearly $593 before quickly giving up those gains. At one point, shares briefly dipped into negative territory, though they ultimately ended the session up around 0.4%.

The stock has been on a tear for more than five years, climbing roughly 270% during that time. The second half of 2025 was especially strong, helped by multiple quarters of earnings and revenue beats that continued pushing shares higher. Shares climbed from below $400 in early June to an all-time intraday high above $742 in December.

Dillard's, Inc. (DDS) Price Chart for Friday, June, 12, 2026

Since hitting the peak, momentum has cooled. Shares are down more than 20% over the last three months, with sentiment taking another hit after the company’s fourth-quarter earnings report on Feb. 24. During that quarter, both earnings and revenue declined year over year, while revenue missed Wall Street expectations.

Wall Street Remains Cautious on the StockAlthough Q1 results were solid, analysts remain cautious on the stock. Based on five Wall Street analysts covering the company, Dillard’s currently carries two Sell ratings and three Hold ratings. The average 12-month price target is around $521, slightly below the current stock price of around $527. The lowest target stands at $449, while the highest is $650.

Dillard's Stock Forecast Today12-Month Stock Price Forecast:
$521.33
-15.12% Downside

Hold
Based on 5 Analyst Ratings

Current Price$614.22High Forecast$650.00Average Forecast$521.33Low Forecast$449.00Dillard's Stock Forecast Details

After such a strong run in the stock price, some investors may also be questioning the stock’s valuation. Dillard’s trades at around 12X earnings, which is above the broader retail industry average of roughly 10.8X. It also trades at a premium to traditional department store peers. Macy’s Inc. NYSE: M currently trades at a P/E of roughly 8X, while value-oriented chain Kohl’s Corp. NYSE: KSS trades at just under 5X earnings.

However, it’s worth noting that despite generating less revenue than Macy’s and Kohl’s, Dillard’s remains more profitable. The company has a net margin of around 10.1%, far above Macy’s roughly 2.4% and Kohl’s less than 1.8%. Its return on equity of nearly 32% also tops Macy’s roughly 14% and Kohl’s less than 5%.

While Dillard’s continues to post strong profitability metrics, investors appear increasingly cautious after the stock’s massive multi-year rally. For now, Wall Street seems to be waiting for stronger underlying growth and a clearer outlook before turning more bullish on the shares.

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Using vanilla websites for your dividend research? Be careful.

Many of these mainstream sites miss the most important payment of the year for “special” dividend companies!

This oversight could have us overlooking thousands of dollars in potential yearly income. And yields up to 14.6%!

Would you believe what this 14.6% payer is listed at on these lame sites? 0.2%. Zero-point-two percent.

Yup. Which is why we contrarians do our research with a focus on special dividends.

Specials uncommon enough that many investors don’t know much (if anything) about them. In short, they’re one-time cash payouts, usually the result of a massive capital boost—say, selling off a piece of the company or delivering blowout annual profits.

At least, usually that’s the case.

Some stocks pay out so-called “supplemental” dividends that they pair with regular distributions. Let’s say a company pays out 50 cents per share quarterly, but at the end of the year it pays out half of its free cash flow as a supplemental dividend. That might be an extra $1 in one year, $3 in another.

In some cases, it’s a tidy little “top-up” that makes a nice dividend a little nicer. But sometimes, these special dividends take a decent to even modest yield and turn it into an eye-popping payout in the high-single or even double digits.

MORE FOR YOU

Just check out this seven-pack of “special” payers. While financial dividend sites would tell us they’re paying a collective 6% on average, in reality, this mini-portfolio’s true average yield is a mouth-watering 10%.

Special Dividends From RetailersLet’s start with an unlikely pair—two mall names most income investors wouldn’t touch with a ten-foot pole.

I wouldn’t want to share a foxhole with Dillard’s (DDS, 0.2% headline yield) and The Buckle (BKE, 2.9% headline yield). They’re both mall plays—the former is one of the few remaining department-store chains, while the latter is a fashion retailer, which is as fickle as a business gets. Economic shivers give both the fits, and a pressured consumer has both well in the red so far this year.

But to their credit, they’ve been two of the better mall names in recent years, and their practice of topping up modest regular dividends with large specials as profits allow is a great model for their cyclical businesses.

They’re also both sterling examples of just how much yield is “hidden” from us. Just look at what a top data provider lists for each, and what their actual yields are.

DDS Yield

Ycharts

That microscopic payday only factors in Dillard’s 30-cent quarterly dividend. But DDS has been paying enormous special dividends for years—$15 per share in 2021 and 2022, $20 in 2023, $25 in 2024, and $30 in 2025. Including that last special, Dillard’s true yield is 5.9%.

BKE Yield

Ycharts

The Buckle’s regular payout is at least respectable at just shy of 3%. But that’s a far cry from the real number, because like Dillard’s, BKE has been handing out large specials to start each of the past few years. Add 2026’s $3-per-share special on top of its 35-cent quarterlies, and Buckle’s true yield is 9.1%.

Fair warning: Management isn’t promising us those fat specials. But they’ve clearly signaled they’re willing to share the wealth when times are good. And that’s a nice potential bonus for anyone who was already planning on taking a flyer in the retail space.

Special Dividends From InsurersInsurers are basically in the business of pricing chaos, so it’s almost strange that so many of their dividends are the same year in and year out. Regular-and-special systems make a lot more sense given their cyclical earnings.

Amerisafe (AMSF, 5.2% headline yield)—a workers’ compensation insurer with a focus on small to midsized employers in “high-hazard” industries such as construction, trucking and agriculture—is something of an outlier in this area in that its bottom line is much more stable than the average insurer.

But that doesn’t mean its profit situation is necessarily good.

I mentioned in 2025 that anyone interested in AMSF’s big special dividends should keep a close eye on Amerisafe’s bottom line. While Amerisafe has been able to grow its top line consistently, the company’s profits have declined in each of the past two years. Wall Street analysts covering the stock believe that’ll happen again in 2026, and that 2027 earnings will merely remain level. One of the biggest culprits has been slowing job growth, which has become downright anemic in the past year or so.

This has really cramped Amerisafe’s special distribution. AMSF has been writing regular dividend checks since 2013 and specials since 2014—and 2025’s extra payout, while still enough to boost the true yield to 8.4%, was the smallest in a decade.

Old Republic International (ORI, 3.1% headline yield) is a specialty and title insurance company that operates in the U.S. and Canada. The title segment of the business provides protection against losses over real estate disputes, and provides escrow closing and construction disbursement services. The specialty insurance segment is much wider, including commercial auto, commercial property, travel accident, aviation, environmental, cyber, and numerous other coverages, offered up to a variety of industries, including transportation, healthcare, education, retail, energy and more. It also plays in Amerisafe’s workers’ comp sandbox.

ORI’s top line has generally trended higher for decades, but its bottom line is the erratic mess we’d expect out of an insurer—even one as well-diversified as Old Republic.

So we have to tip our hats to management, which has made ORI one of the most prolific dividend growers on the market despite this uncertain profit footing. Old Republic boasts a full 45 years of consecutive annual distribution hikes. Management is quick to throw extra dividends at shareholders when profits allow, too—and those special dividends can be massive. A $2.50-per-share special on top of its 31-cent regulars comes out to a true yield of 9.4%.

But because ORI’s business is more unpredictable than the likes of an Amerisafe, the specials are spottier.

Special Dividends From Business Development Companies (BDCs)In general, “normal” stocks that pay regular dividends tend to offer up decent-but-not-great regular dividends, then blow us away with fat specials when they can.

Business development companies (BDCs), which provide financing to smaller firms, take a different tack. That is, they pay regular dividends that in and of themselves put almost every other sector to shame—and when net investment income is sufficient enough, they’ll sweeten them even further with top-up specials.

Take Capital Southwest Corp. (CSWC, 10.0% headline yield) for instance.

CSWC provides capital to lower middle market firms with EBITDA (earnings before interest, taxes, depreciation and amortization) of between $3 million and $25 million. The vast majority (90%) of its deals are first-lien loans, most of the rest (9%) is equity, though it has sprinklings of second-lien loans and subordinated debt. It has a diversified portfolio of 131 companies representing a couple dozen industries; healthcare services, consumer services, media/marketing and consumer products are the best-represented right now.

The BDC industry is a difficult one where losers greatly outnumber winners. But I’ve said before that CSWC is a standout—it has moderate leverage and a well-covered dividend. Meanwhile, special dividends add a full percentage point, for a true yield of 11%.

Better still? Capital Southwest recently converted its payout system from quarterly to monthly distributions.

It admittedly makes for a bizarre chart.

CSWC Dividend

Ycharts

The only glaring weakness here is a premium valuation to match CSWC’s premium performance. Right now, Capital Southwest’s shares trade at a whopping 40% above the BDC’s net asset value (NAV).

Fidus Investment Corp. (FDUS, 9.2% headline yield) invests in a wide range of lower middle market companies, preferring firms with proven business models and strong free cash flows. Target companies typically have annual EBITDA of $5 million to $30 million. Its deal mix is more diversified than CSWC, with about 80% in first-lien debt, 7% in each of subordinated debt and equity, and the remaining 6% in second-lien loans.

Fidus has 97 portfolio companies at the moment. And while they’re spread across a couple dozen industries, FDUS leans heavily into information technology service firms, which make up more than a third of the portfolio at cost. However, while tech exposure has been an anvil tied to the ankles of numerous other BDCs, AI seemingly hasn’t been weighing on its holdings—Fidus has outperformed the sector by about 15 percentage points over the past year.

FDUS does have a dividend strike against it in that it cut its regular payout during the pandemic. But it quickly worked to restore the distribution to—and eventually past—pre-COVID heights. The pandemic also marked a shift from annual top-ups to quarterly top-ups.

FDUS Dividend

Ycharts

The specials over the past 12 months take Fidus from a headline yield of 9.2% to a true yield of 11.8%.

Unlike with CSWC, we’re not being forced to overpay for FDUS’ relative business strength. Shares currently trade at a modest 5% discount to NAV.

Bain Capital Specialty Finance (BCSF, 12.8% headline yield) is one of the more geographically diversified BDCs, providing a variety of financing solutions to over 200 companies not just in North America, but also Europe and even Australia. It primarily deals in first-lien debt, which makes up a little more than 80% of its deal mix. Equity and preferred equity each make up about 7% apiece, but it also works with subordinated debt (3%) and second-lien loans (1%).

Bain Capital has delivered mixed results since its initial public offering (IPO) in 2018. It had caught its stride in recent years, but took a step back in 2025 before getting back up to speed this year. Non-accruals (loans not accruing interest because they’re past due, usually by 90 days or more) of just 1.4% are well below the BDC average of nearly 4%. Software makes up 13% of the portfolio, but CEO Michael Ewald said in the Q1 conference call that a recent review showed “the majority of our software investments carry a relatively low risk of AI-driven disruption.”

BCSF is also easily the cheapest of the three BDCs here, trading at a steep discount to NAV of 22%.

BCSF Dividend

Ycharts

Bain Capital pre-announced 3-cent specials across all of 2025, then ended the year by announcing an additional 15-cent special to be paid in early 2026. After that, however, it has announced two quarterly dividends with no specials.

Once we factor in specials paid over the past 12 months, BCSF’s true yield is 14.6%. But it’s possible that number is overshooting its future yield—and not only because we can’t count on specials. The pros are projecting that Bain Capital’s earnings will be barely enough to cover the dividend this year, and will fall well short of the payout in 2027.

Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.2%) — Practically Forever.

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Stock to Watch: Dillard's (DDS - Free Report) Dillard's Inc. is a large departmental store chain featuring fashion apparel and home furnishings. As of May 2, 2026, DDS operated 272 Dillard’s stores, including 28 clearance stores across 30 states. The company also sells its merchandise through the Internet at www.dillards.com. Stores are mainly located in the Southwest, Southeast, and Midwest regions of the United States.

DDS is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Retail-Wholesale stock. DDS has a Momentum Style Score of A, and shares are up 6.8% over the past four weeks.

For fiscal 2027, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $2.74 to $35.26 per share. DDS boasts an average earnings surprise of +27.9%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DDS should be on investors' short list.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, June 4:

Keysight Technologies, Inc. (KEYS - Free Report) : This electronic design and test solutions company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.

Keysight’s shares gained 23.2% over the last three months compared with the S&P 500’s advance of 10.6%. The company possesses a Momentum Score of A.

Dillard's, Inc. (DDS - Free Report) : This large fashion retailing company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days.

Dillard’s shares gained 9.3% over the past month compared with the S&P 500’s advance of 4.2%. The company possesses a Momentum Score of A.

Atlanticus Holdings Corporation (ATLC - Free Report) : This financial technology company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.8% over the last 60 days.

Atlanticus’ shares gained 30.3% over the last three months compared with the S&P 500’s advance of 10.6%. The company possesses a Momentum Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Momentum score and how it is calculated here.

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Key Takeaways HEICO expects 15.2% fiscal 2026 sales growth from FAA-approved jet engine replacement parts.Dillard's operated 272 stores as of May 2, 2026; fiscal 2027 sales growth is expected at 2.1%.CBRE Group sees sales rising 14.8% in 2026 through leasing, property sales and valuation services. U.S. equities have remained resilient year to date, although performance has been highly uneven. After rebounding from early-period volatility, markets have pushed higher as solid corporate earnings, AI-led optimism and a still-supportive economic backdrop have helped offset broader macro concerns. Investor sentiment has remained sensitive to shifting Fed-rate expectations, Treasury-yield swings, oil-price volatility, geopolitical risks, particularly tensions in the Middle East, and evolving trade policies.

The traditional way of choosing stocks is a good idea. Sales growth provides a more reliable view for evaluating stocks compared with earnings-focused metrics. In this regard, stocks like HEICO Corporation (HEI - Free Report) , Dillard's Inc. (DDS - Free Report) and CBRE Group, Inc. (CBRE - Free Report) are worth considering.

Sales growth is one of the clearest measures of a company’s underlying business expansion. While earnings can be influenced by several factors, revenues provide a more direct view of customer demand and whether a company is selling more of its products or services. Sustained sales growth may reflect healthy end-market demand, market-share gains, pricing power, successful product launches, or expansion into new geographies and customer segments.

Sales growth can also serve as a foundation for improved profitability. As sales rise, companies may be able to spread fixed costs across a larger revenue base, enhancing operating leverage and supporting margin expansion over time. However, sales growth should not be evaluated in isolation. It is most meaningful when considered alongside industry trends, peer performance, pricing dynamics, customer mix and the broader economic backdrop.

The quality and durability of sales growth are equally important. Recurring revenues, repeat purchases, volume-driven gains and sustainable end-market demand are generally more valuable than growth, driven by temporary factors, acquisitions or short-term price increases. Companies that consistently deliver high-quality sales growth across market cycles are often better positioned to generate reliable cash flows, reinvest in the business, strengthen their competitive position and create long-term shareholder value.

Selecting the Potential Winning StocksTo shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.

But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.

P/S Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.

% Change F1 Sales Estimate Revisions (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.

Operating Margin (average last five years) greater than 5%: The operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs — an optimal situation.

Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that the company is spending wisely and is, in all likelihood, profitable.

Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform, irrespective of the market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.

3 Stocks With Solid Sales Growth to BuyHollywood, FL-based HEICO is one of the world’s leading manufacturers of Federal Aviation Administration-approved jet engine and aircraft component replacement parts. HEI also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries.

HEICO’s expected sales growth rate for fiscal 2026 is 15.2%. HEI carries a Zacks Rank #2 at present.

Headquartered in Little Rock, AR, Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. As of May 2, 2026, DDS operated 272 Dillard’s stores, including 28 clearance stores across 30 states located in the Southwest, Southeast and Midwest regions of the United States.

Dillard's expected sales growth rate for fiscal 2027 is 2.1%. DDS currently sports a Zacks Rank #1.

Dallas, TX-based CBRE Group is a commercial real estate services and investment firm. CBRE provides leasing, property sales, commercial mortgage origination, loan servicing, valuations and other advisory services to tenants, owners, lenders and investors across major global markets.

CBRE’s sales are expected to rise 14.8% in 2026. CBRE Group carries a Zacks Rank #2 at present.

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Published in aerospace finance retail