Not many retailers can claim to be reliable dividend payers. That's because the industry is highly competitive and characterized by tiny profit margins. Retailers must also endure sales pressures during those inevitable downturns in consumer spending that make it harder to maintain positive earnings consistently.

As a result, when you see a retailer that's been steadily boosting its dividend for decades, you've likely found an unusually strong business. Not only have these companies maintained profitability through a wide range of selling conditions, but they've effectively managed their capital to protect shareholders' returns.

Walmart (NYSE: WMT) and (NYSE: TGT) are two rare examples of safe dividend payers in the retail space. Between them, they've hiked their annual payouts for over 100 years. But only one of them is an excellent candidate for an income investor's portfolio right now.

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Source Fool.com