Target Hikes Its Dividend: What This Means for Investors
Target raised its dividend again, extending a very impressive streak of annual increases. Here's what you need to know.


Target (TGT) gave income investors something to cheer about Wednesday, when the discount retailer announced another dividend hike, extending its long streak of annual increases.
The 1.8% increase brings Target's quarterly dividend to $1.12 per share, or $4.48 per share on an annual basis. This works out to be less than half of analysts' expected earnings of $9.35 for the full fiscal year. The next dividend is payable on September 10 to shareholders of record at the close of business on August 21.
Impressively, this latest hike marks the 53rd consecutive year in which Target has raised its annual dividend payment.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Why Target's dividend hike matters to investors
Businesses with dependable dividend growth are important for several reasons. For one, "companies that raise their payouts like clockwork decade after decade can produce superior total returns (price change plus dividends) over the long run, even if they sport apparently ho-hum yields to begin with," writes Dan Burrows, senior investing writer at Kiplinger, in his feature on the best dividend stocks for dependable dividend growth.
Additionally, dividend growers offer some peace of mind to investors. "After all, any company that manages to raise its dividend year after year – through recession, war, market crashes and more – is demonstrating both its financial resilience and its commitment to returning cash to shareholders," Burrows adds.
Target's decades-long streak of consistent dividend growth has it included in the Dividend Aristocrats, the best dividend stocks in the S&P 500 that have consistently raised their annual payouts for 25 straight years. Only 67 companies make the list.
Is Target stock a buy, sell or hold?
The consumer staples stock has underperformed on the price charts this year, up 4% on a total return basis vs the S&P 500's 13% gain. Still, Wall Street is bullish. According to S&P Global Market Intelligence, analysts' average target price for TGT is $174.45, representing implied upside of over 18% from current levels. Additionally, the consensus recommendation is Buy.
Argus Research analyst Chris Graja is one of those with a Buy rating on Target and an above-average $200 price target.
"We believe that Target remains very relevant to its customers as a place where they can get food and staples at good prices, and stylish, budget-friendly clothing and home goods," Graja said in a May 24 note. The company has earned its status as a "go-to" retailer, the analyst adds, and any weakness in the stock offers a buying opportunity.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Married? Five Ways to Ensure Your Estate Plans Work in Tandem
Getting on the same page now means fewer potential problems when it counts.
By Kiplinger Advisor Collective
-
12 Investments No Retiree Should Make
In retirement, when it's wise to take fewer risks with your nest egg, some investments are just nuts.
By David Rodeck
-
Before You Invest Like a Politician, Consider This Dilemma
As apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
By Ryan K. Snover, Investment Adviser Representative
-
How to Put Together Your Personal Net Worth Statement
Now that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
By Denise McClain, JD, CPA
-
Stock Market Today: Trump Retreats, Markets Rejoice
Stocks rally, yields soften, the dollar rises, and even beaten-down names enjoy the wages of potential trade peace.
By David Dittman
-
Tesla Stock Pops as Elon Musk Promises DOGE Draw Back
Tesla reported a sharp drop in first-quarter earnings and sales, as the EV maker suffered a backlash to its CEO's political ambitions.
By Karee Venema
-
Bouncing Back: New Tunes for Millennials Trying to Make It
Adele's mournful melodies kick off this generation's financial playlist, but with the right plan, Millennials can finish strong.
By Alvina Lo
-
Early-Stage Startup Deals: How Do Convertible Notes Work?
Some angel investors support early startups by providing a loan in exchange for a convertible note, which includes annual interest and a maturity date.
By Murat Abdrakhmanov
-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
How Can Investors Profit From AI's Energy Use?
Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
By Jacob Schroeder