The bottom is in for high-yielding Kohl’s (NYSE: KSS), but risk-averse income investors, be warned. After sinking to its lowest levels in early April, the stock has mounted an impressive rebound, yet volatility remains the only thing that should be expected for the rest of the year. While the turnaround is bearing fruit and the recently reduced dividend distribution looks sustainable, uncertainties remain, and the short interest is still a concern.
Although short interest fell 31% sequentially in early August, it remains elevated at about 32% of the float, creating a lingering headwind in Q3 and potentially Q4. That kind of pressure can magnify swings, even as operational improvements support the longer-term outlook.
