5 Dividend Growth Stocks with the Highest Growth Rates

3. Target Corporation (NYSE:TGT)

12-Month Dividend Growth Rate: 20%

Target Corporation (NYSE:TGT) is a Minnesota-based big-box store chain that has stores in all states in the US. In February, Piper Sandler raised its price target on the stock to $220 with an Overweight rating on the shares.

On January 12, Target Corporation (NYSE:TGT) declared a quarterly dividend of $1.08 per share, which fell in line with its previous dividend. In the past 12 months, the company has raised its dividend by 20%, which places it as one of the best dividend growth stocks on our list. Overall, the company maintains a 51-year streak of dividend growth. The stock has a dividend yield of 2.51%, as of February 13.

As of the close of Q3 2022, 52 hedge funds tracked by Insider Monkey owned investments in Target Corporation (NYSE:TGT), jumping from 46 a quarter earlier. The consolidated value of stakes owned by these funds is over $2 billion.

Madison Funds mentioned Target Corporation (NYSE:TGT) in its Q4 2022 investor letter. Here is what the firm has to say:

“Despite having already addressed excess inventories, Target Corporation (NYSE:TGT) reported a disappointing third quarter and further cut fourth quarter guidance. Although sales were slightly better than expected, Target saw a slowdown in discretionary sales. Gross margins were below expectations with higher markdowns, increased shrink, and incremental costs. Long-term, we expect Target to be able to return to operating margins in the 6% to 8% range as inventories return to normal levels as well as seeing a normalization in supply chain costs.”