Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, women's apparel retailer Cato (NYSE: CATO) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Cato's business and see what CAPS investors are saying about the stock right now.

Cato facts

Headquarters (Founded) Charlotte, N.C. (1946)
Market Cap $712.1 million
Industry Apparel retail
Trailing-12-Month Revenue $939.3 million
Management

Chairman/CEO John Derham Cato (since 1999)

CFO John Howe (since 2008)
Return on Equity (Average, Past 3 Years) 16.8%
Cash/Debt $267.9 million / $0
Dividend Yield 3.8%

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 84% of the 91 members who have rated Cato believe the stock will outperform the S&P 500 going forward. These bulls include pbk100 and All-Star tenmiles, who is ranked in the top 0.05% of our community.

Earlier this year , pbk100 listed a few of Cato's positives: "No [long-term] debt, reasonable and growing dividend, growing revenue and earnings."

In fact, Cato currently sports a juicy dividend yield of 3.8%. That's higher than that of industry peers like Chico's FAS (NYSE: CHS) (1.5%), Guess? (NYSE: GES) (2.5%), and Limited Brands (NYSE: LTD) (2.1%).

CAPS All-Star tenmiles elaborates on the income opportunity:

Re-entering long on debt-free CATO around $24 given its "sleep at night" balance sheet with large cash postion and healthy dividend. Unlikely to be worse than market performer for those with 3 year timeframe after recent sell-off. No LBO opportunity here as two tier share class structure, but good opportunity for the "value camp" types to scale in at more attractive price.

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