Macy's, Inc. M

While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.

Exceeded profitability guidance for the quarterGenerated record-high third quarter free cash flow from operations of $268M, and adjusted free cash flow of $218M Increased quarterly dividend NEWARK, Calif., Sept. 29, 2026 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced financial results for the fiscal third quarter ended August 31, 2026. Three Months Ended August 31, 2026 August 31, 2025 ChangeRevenue ($M)$2,453.7 $2,483.3 (1.2)%

Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.

Dillard's posted a yield that barely registers at 0.18%, yet some shareholders collected over $31 per share in the past year alone. Whether that kind of payout repeats depends on factors most income investors overlook entirely.

Both Kohl's and Macy's have slashed their dividends before, both just raised guidance, and both are pitching themselves as turnaround stories. The question for retirees counting on that quarterly check is which payout actually has the staying power to survive another rough year.