13 Best February Dividend Stocks To Buy

8. Target Corporation (NYSE:TGT)

Ex-Dividend Date: February 11

On January 27, Wolfe Research raised its view on Target Corporation (NYSE:TGT), upgrading the stock to Peer Perform from Underperform ahead of the retailer’s investor day scheduled for March 3. The firm did not assign a price target but said Target offers a wide margin of safety, even after cutting its estimates, largely because of the value tied to its owned real estate. Wolfe estimates that real estate accounts for roughly 70% to 75% of Target’s enterprise value and noted early signs that the core business is starting to stabilize.

Separately, a January 22 Reuters report said Target appointed two new directors to its board ahead of Michael Fiddelke taking over as chief executive in February. The board added John Hoke III, Nike’s former chief innovation officer, and Steve Bratspies, the former CEO of HanesBrands. Both are seasoned merchandising executives and are expected to help sharpen Target’s style and product mix, areas where the retailer has recently struggled to connect with shoppers.

With the additions, Target’s board will expand to 15 directors, according to a company spokesperson. The changes come as the retailer looks to restart growth after reporting three straight quarters of declining comparable sales. The stock has also been under pressure, down about 22% over the past year.

Target is also dealing with pressure from activist investor Toms Capital Investment Management, which reportedly built a stake in December. The firm has raised concerns tied to weak sales trends, the erosion of Target’s cheap chic reputation, and difficulties competing on price with Amazon and Walmart. The company has also faced criticism following its decision to scale back diversity, equity, and inclusion policies last year.

Hoke is set to join the board on March 1 and will serve on the governance, sustainability, and compensation committees. Bratspies will join on April 1 and serve on the audit and finance committees.

Target Corporation (NYSE:TGT) operates as a general merchandise retailer, selling products through its stores and digital platforms. The company offers customers, referred to as guests, a mix of everyday essentials and fashion-focused merchandise at discounted prices.