Quick Read
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Dillard's (DDS) regular dividend yields just 0.18%, but its annual special dividends have grown from $15 to $30 since 2021 and delivered $31.20 per share over the past year.
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Macy's (M) and Kohl's (KSS) offer higher headline yields but carry weaker balance sheets versus Dillard's $1.2 billion cash position after retiring debt.
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Future specials hinge on free cash flow that loses a non-recurring $1.82 tariff refund, making the November board declaration the critical income signal.
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Dillard's( NYSE:DDS ) pays $0.30 per share each quarter, an annualized forward rate of $1.20. With shares at $664.04, that is a regular yield of roughly 0.18%. Over the trailing 12 months, however, shareholders collected $31.20 per share. Income investors need to treat those as two separate streams.
Two Dividends Hiding in One Ticker
The regular payout has rose steadily, from $0.15 in 2020 and 2021 to $0.20, then $0.25, and now $0.30. The next check goes ex-dividend September 30 and pays November 2, 2026.
The specials, declared each November, are where the money lives:
| Payment Date |
Special Dividend |
|---|---|
| Jan. 5, 2026 |
$30.00 |
| Jan. 6, 2025 |
$25.00 |
| Jan. 8, 2024 |
$20.00 |
| Jan. 9, 2023 |
$15.00 |
| Dec. 15, 2021 |
$15.00 |
CEO William T. Dillard, II framed the latest payout in February:
"We rewarded our shareholders with the largest dividend in our history and still held around $1.1 billion in cash and short-term investments at year-end."
Free Cash Flow Decides the Next Special
In fiscal 2026, Dillard's generated $717 million in operating cash flow and $623.6 million in free cash flow. Dividends consumed $484.8 million. The regular dividend alone costs about $4.7 million a quarter, a small sum. The special takes most of the surplus.
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That makes earnings quality critical. Second-quarter EPS of $6.25 exceeded the $4.21 estimate, but $1.82 per share came from a tariff refund the company does not expect to repeat. Comparable sales rose just 1% while inventory grew 5%.
"Our 1% sales increase points to a somewhat resilient consumer. Retail gross margin of 40.9%, boosted by tariff rebates, helped grow cash flow and the bottom line."
Buybacks Have Faded as Specials Grew
Repurchases fell from $544.9 million in fiscal 2022 to $107.8 million in fiscal 2026, and the two most recent quarters show zero. About $165.2 million remains authorized, with roughly 15.6 million shares outstanding. Capital return has changed toward cash in hand.
Family Control Shapes How the Stock Trades
Insiders hold 32.004% of shares, and the float is only 7,492,700 shares. Concentrated ownership rewards the family through specials and keeps the balance sheet conservative, but a thin float magnifies swings. The stock is up 13.74% over one year and 311.55% over five. It trades at a trailing P/E of 15 and a forward P/E of 35, above the $545.67 analyst target.
Where Dillard's Stands Against Macy's and Kohl's
Macy's( NYSE:M ) and Kohl's( NYSE:KSS ) are known for higher headline yields but weaker balance sheets. Dillard's offers the opposite: a tiny stated yield backed by more than $1.2 billion in cash and short-term investments after paying off $96 million in debt.
Verdict: An Opportunistic Holding
Dillard's is an opportunistic holding. The only income a shareholder can count on is $1.20 a year. The specials depend on discretionary board decisions and on free cash flow that loses its tariff boost going forward. The November declaration and holiday-quarter comparable sales will signal the size of the next check.
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