Retail giant Target Corporation (NYSE: TGT) recently announced a quarterly dividend of $1.08 per share, an increase of 20% from the previous dividend of $0.90 per share.
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The dividend will be paid on September 10, 2022, to shareholders of record as of August 17, 2022.
Following the news, shares of the company declined 1.4% on Thursday. The stock, however, pared almost all its losses to close at $154.69 in the extended trading session.
Dividend Yield
The company’s annual dividend of $4.32 per share now reflects a dividend yield of 2.8% based on Thursday’s closing price.
Notably, the company has been raising its quarterly dividend consistently over the past 11 years, making it an attractive choice for investors.
Stock Rating
On June 10, Gordon Haskett Capital Corporation analyst Charles Grom reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $200 to $190, which implies upside potential of 22.9% from current levels.
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 17 Buys and nine Holds. TGT’s average price target of $182.85 implies that the stock has upside potential of 18.3% from current levels. Shares have declined 33.3% over the past year.
Investors’ Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on TGT, as 31.9% of the top portfolios tracked by TipRanks increased their exposure to TGT stock over the past 30 days.
Conclusion
Amid weak demand for its products and inventory issues, Target’s stock has witnessed a steady decline so far this year. However, the latest hike in the quarterly dividend can lend TGT stock some strength in these uncertain times, along with providing shareholders certainty of income.
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