Target Corporation Gives Shareholders 32.4% Hike in Quarterly Dividend; Shares Fall 1.3%


Target Corporation (TGT), one of the largest retailers in the United States, has hiked its quarterly dividend by 32.4% to $0.90 per share. Shares of the company fell 1.3% to close at $231.94 on June 9.

Target’s annual dividend of $3.6 per share now reflects a dividend yield of 1.6%.

Target Corporation CFO Michael Fiddelke said, “Given strong operating performance and cash generation, our business is well-positioned to support this robust increase in the dividend, even as we ramp up capital investments in our business and continue to invest in our team.”

On May 19, Target reported upbeat Q1 results. The company’s adjusted earnings grew substantially by 525% to $3.69 per share on a year-over-year basis. Its total revenues were $24.2 billion in Q1, which climbed 23.4% from the year-ago period. Analysts were expecting revenues of $21.81 billion. (See Target Corporation stock analysis on TipRanks)

On May 20, Jefferies analyst Stephanie Wissink reiterated a Hold rating on the stock but increased her price target to $235 from $210. This implies 1.32% upside potential from current levels.

Wissink commented, “Q1 was a confirmatory event on many fronts. With omni margins closing the gap to stores and store traffic rebounding, the model now marches forward on comp driven by basket size and visit frequency.”

The consensus among analysts is a Strong Buy based on 16 Buys and 4 Holds. The TGT average analyst price target of $249.50 implies 7.6% upside potential from the current levels. Shares have gained 93.3% over the past year.

TipRanks data shows that financial blogger opinions are 93% Bullish on TGT, compared to the sector average of 71%.

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