Dividend Champions Spotlight: Target Corporation’s (TGT) Long Track Record of Payout Growth

Target Corporation (NYSE:TGT) is included among the Best Dividend Stocks for a Dividend Champions List.

Photo by Dan Dennis on Unsplash

Target Corporation (NYSE:TGT) is one of the most famous retail corporations in the US. The company has built its reputation on giving shoppers a more upscale feel compared with the typical big-box store. Customers can find everything from clothes and home decor to everyday basics. The company has a big footprint too, with more than 1,900 locations across the US, and it pulls in over $100 billion a year in sales.

Still, it hasn’t been smooth sailing lately. With consumers cutting back and competition coming from all angles, Target Corporation (NYSE:TGT)’s growth has been under pressure. However, there are some bright spots. As malls and traditional department stores continue to fade, Target stands to pick up some of that lost traffic. On top of that, its core customer tends to be higher income, averaging close to $79,000 a year, which gives the brand a bit more cushion than some rivals.

Target Corporation (NYSE:TGT) also showed during the pandemic that it can pivot when needed. Investments in store remodels and a heavy push into digital sales gave it a big boost, with revenue climbing about 40% between 2019 and 2022.

When considering its strengths, Target Corporation (NYSE:TGT)’s dividend also stands out, which the company has been growing for 54 consecutive years. This gives the company a Dividend King status. TGT pays a quarterly dividend of $1.14 per share for a dividend yield of 5.09%, as recorded on October 2.

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Disclosure: None.