Covered, compounding — at a fuller payout. A 3.85% yield on a 63.87% trailing payout is covered, but fuller than most House cards: $0.96 a quarter, raised in March 2026 from $0.95, for 21 years of growth. The September 2026 dividend was paid Oct. 8, 2026, and the payout rests on a retailer whose comparable sales momentum returned in the second quarter — discretionary spending, not a regulated stream.
Key risk: Discretionary-consumer risk — electronics spending falls fast in a consumer downturn, and a CEO transition on Nov. 1, 2026, with Jason Bonfig succeeding Corie Barry, lands just ahead of the holiday quarter.
Changes if: Trailing payout pushes well past 63.87%, or comparable sales turn negative for two quarters. Cash coverage, not just earnings coverage, is the tripwire here.
- !Payout-coverage check: 63.87% trailing — the $3.84 indicated dividend is covered, but leaves less retained than a lower-payout payer, so earnings durability matters more here.
- ✓Yield check: 3.85% indicated — $0.96/qtr × 4 at the $99.87 close on Oct. 23, 2026. Real, earned yield for a single retailer, not a special or a return of capital.
- ✓Dividend growth check: 21 years of growth; the latest raise, declared Mar. 3, 2026, lifted the quarterly dividend from $0.95 to $0.96.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.