Target (TGT) Expected to Deliver Another Dividend Increase

What's Happening With TGT View more about TGT >

Mega-retailer Target (TGT) is expected to extend its 51-year streak of dividend increases this week. The stock currently yields 3.0% and shares have appreciated 31.1% on the year.

Technical Analysis

TGT was recently trading at $86.67 down $3.72 from its 12-month high and $26.52 above its 12-month low. InvestorsObserver’s Stock Score Report gives TGT a 83 long-term technical score and a 80 short-term technical score. The stock has recent support above $82 and recent resistance below $90. Of the 20 analysts who cover the stock 9 rate it Strong Buy, 0 rate it Buy, 11 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, TGT gets a score of 69 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Target is a true dividend aristocrat, and with a payout ratio of just 47% the company can easily afford to extend its five-decade plus streak of increases when it announces its next dividend. The company has historically announced its dividend increases during the second week of June, so this year’s increase should be announced at some point this week. The company has lifted its dividend by $0.02 the last two years, and with the stock already yielding 3%, this year’s increase should be along the same lines. Look for the company to lift its quarterly payment from $0.64 to $0.66 for an increase of 3.1% and the stock to trade ex-dividend mid-August. TGT is in a strong upward trend, fueled in part by a better than expected set of quarterly numbers in late May and analysts see additional upside in the stock with an average price target of $90.89.

TGT
About Target Corporation

With 1,844 stores (as of the end of fiscal 2018), Target is a leading American general merchandise retailer, offering a variety of products across several categories, including beauty and household essentials (24% of fiscal 2018 sales), apparel and accessories (20%), food and beverage (20%), home furnishings and décor (19%), and hardlines (17%). Most of Target's stores are large-format, averaging around 130,000 square feet. The company has a significant e-commerce presence, deriving around 7% of sales from the channel. In addition to its namesake stores, Target owns Shipt, an online same-day delivery platform. After it exited Canada in 2015, virtually all of Target's revenue is generated from the United States.

  • Last Price:
    $107.98
  • Previous Close:
    $108.94
  • Change:
    $-0.96 (-0.88%)
  • Open:
    $109.07
  • Volume:
    2,165,403
  • Average Volume (100 Day):
    5,720,049
  • Market Capitalization:
    $55.2 B
  • Day's Range:
    $107.83 - $109.17
  • Dividend Yield:
    2.42%
  • 52-week Range:
    $111 - $60.15
  • P-E:
    17.90
  • EPS:
    $6.04
  • Earnings Date:
    11/19/19
  • Ex Dividend Date:
    8/20/19
  • Sector:
    Consumer Defensive
  • Industry:
    Discount Stores
  • Analyst Average Recommendation:
    Moderate Buy

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