5 Dividend Stocks Redditors are Buying for Recession

In this article, we discuss 5 dividend stocks Redditors are buying for recession. If you want to read our detailed analysis of dividend stocks, go directly to 10 Dividend Stocks Redditors are Buying for Recession. 

5. Target Corporation (NYSE:TGT)

Dividend Yield as of July 10: 2.92%

Target Corporation (NYSE:TGT) is a Minnesota-based big box-store company and one of America’s leading retailers. After delivering better-than-expected results in Q1 2022, the company expects its operating margins to be around 5.3% in the second quarter and revenue growth in the low-to-mid single-digits range.

On June 9, Target Corporation (NYSE:TGT) announced a quarterly dividend of $1.08 per share, up 20% from its previous payout. In Q1, the company paid 27.8% of its net income in dividends, which shows that it had more than sufficient cash left to fulfill its other financial obligations. It has raised its dividends for the past 51 consecutive years while growing its payouts by 300% in the last ten years. Over its history of 120 years, Target Corporation (NYSE:TGT) has survived nearly 19 recessions, becoming one of the best dividend stocks for recession. The stock’s dividend yield came in at 2.92%, as of July 10.

With consumers shifting their attention to essentials from discretionary products, Credit Suisse set a $180 price target on Target Corporation (NYSE:TGT) and kept an ‘Outperform’ rating on the shares.

At the end of Q1 2022, 50 of the hedge funds that are tracked by Insider Monkey’s database owned stakes in Target Corporation (NYSE:TGT), up from 49 in the previous quarter. The collective value of those stakes was nearly $3 billion. Arrowstreet Capital held the largest position in the company in Q1.