It’s a new equity position for Berkshire this year. As of June 30, Berkshire owned 7.3 million shares valued at $173 million. <\/p>\n
Berkshire has certainly shown it likes Macy’s stock, but here’s why the retailer<\/a> deserves your consideration. <\/p>\n Macy’s raised its quarterly dividend by 5% this year. That increased the payout from $0.1824 to $0.1915 per share. The board of directors has raised dividends annually since 2022. Macy’s resumed payments in 2021 after taking the understandable step of suspending them in 2020 following the onset of the COVID-19 pandemic. <\/p>\n The sharp increase this year sends a positive signal about the company’s confidence in its ability to maintain the higher rate. Still, it’s important to check that it can sustain dividends. <\/p>\n A good measure you can use is the payout ratio, or the dividends as a percentage of earnings. Macy’s has a comfortable 29% payout ratio, which should reassure investors. <\/p>\n The stock has an above-average dividend yield, too. Macy’s shares yield 3.4% compared to 1.1% for the S&P 500<\/a>. (SNPINDEX: ^GSPC) <\/p>\n Upside potential <\/p>\n Macy’s share price gained 29.6% over the last year, through Sept. 8. That beat the S&P 500’s 18.4% by 11.2 percentage points. <\/p>\n However, with Macy’s in the midst of turning around its business, I think there’s more upside potential. Management’s “Bold New Chapter” strategy, launched a couple of years ago, included plans to improve the shopping experience, close unprofitable stores, expand its luxury Bloomingdale’s and Bluemercury luxury brands, and improve the Macy’s brand offerings. <\/p>\n You can see the improvement in the company’s sales results. Same-store sales (comps) have been growing, including by 2.8% in the recently reported fiscal second quarter. All brands had positive comps, with Macy’s, Bloomingdale’s, and Bluemercury posting 1.1%, 11.3%, and 6.2%, respectively. <\/p>\n Importantly, the company’s gross margin, excluding tariff refunds, expanded from 41.4% to 41.5%. <\/p>\n Despite these positive results, Macy’s shares remain an attractive value opportunity. The stock has a price-to-earnings (P\/E) ratio of about 9, a fraction of the S&P 500’s P\/E of 26. <\/p>\n Should you buy stock in Macy’s right now? <\/p>\n Before you buy stock in Macy’s, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Macy’s wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!* <\/p>\n That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of September 12, 2026. <\/p>\n Lawrence Rothman, CFA<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. Supporting dividends <\/p>\n