Target Corporation (TGT): Should You Buy After Its Latest Dividend Increase?

Finally, as promised, Target management reiterated that they intend to use the remaining proceeds to repurchase their own shares over time, with around $547 million already used last quarter to buy back 8.5 million shares of Target stock at an average price of just over $64 per share.

All in all, management plans to invest a total of more than $2 billion this year to retire shares of Target stock, representing more than 4% of the company’s entire market capitalization as of this writing.

Foolish final thoughts

In the end, while Target’s most recent quarterly results initially seemed to leave plenty to be desired, there are a number of reasons Target stock is still trading within reach of its 52-week-high. With shares of Target trading at just 16.4 times last year’s earnings and only 12.8 times next year’s estimates, I’m convinced patient investors who buy today should be more than pleased with their results over the long haul.

The article Target Stock: Should You Buy After Its Latest Dividend Increase? originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com.

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