Ross Stores operates over 1200 discount apparel and accessories stores across the United States. Photo courtesy Nicholas Eckhart/flickr.com.
About Ross Stores
Ross Stores operates the largest discount apparel and home fashion chain in the United States, with over 1200 Ross Dress for Less stores and 152 dd’s DISCOUNTS stores across 33 states, the District of Columbia and Guam.
Ross Stores was formed in August 1982, when 6 small department stores were acquired and converted to the Ross “Dress for Less” format. The company offered an initial public offering to investors in August 1985 to supply capital for its expansion. By the end of the 1980s, Ross had 156 stores in 15 states. By 1995, the company was operating 292 stores. The company continued to expand rapidly, with the quickest growth occurring in the 2000s. Ross also initiated the dd’s DISCOUNTS store format, with a selection of more moderately priced apparel and accessories in 2004. Ross opened its 1000th Dress for Less store in 2011 and its 100th dd’s DISCOUNTS store in 2012.
The company is a member of the S&P 500 index and S&P’s High Yield Dividend Aristocrats index, and trades under the ticker symbol ROP.
As a member of the S&P 500, once Ross Stores has increased dividends for 25 consecutive years S&P will classify the company as an S&P Dividend Aristocrat. Given that Ross has made a conscious effort to increase the dividend each year for 20 years straight, I expect them to continue to do so. This would put them on track to become a Dividend Aristocrat in 2019.
Ross Stores’ Dividend and Stock Split History
Ross Stores has increased dividends since 1995. The company usually announces dividend increases when it reports results at the end of February. The stock goes ex-dividend for the increase in early March.
Ross Stores has compounded its payout at an average rate of 21.5% over the last 5 years and 25.2% over the last 10 years.
Ross Stores has split its stock 2-for-1 five times in its history. The most recent split was in April 2015. The company also split its stock in February 1997, September 1999, December 2003, and November 2011. You would now have 32 shares of Ross stock for each share of stock that you owned at the beginning of 1997.
Ross’ Direct Purchase and Dividend Reinvestment Plans
Ross Stores does not have a direct purchase or dividend reinvestment plan. In order to invest in Ross Stores’ stock, you’ll need to purchase it through a broker. Most brokers will allow you to reinvest dividends without any fee. Ask your broker for more information on how to set this up if you are interested.
Helpful Links
Ross Stores’ Investor Relations Website
Current quote and financial summary for Ross Stores (finviz.com)