Target Dividend Jumps 47%

Target Corp. announced today that the retailer is increasing its quarterly dividend by 47% to $.25 per share.

 

Following the dividend increase, Target’s dividend yield will increase to 1.9% based on yesterday’s closing price. However, the stock will still trail Walmart’s 2.4% yield.

 

“Target’s cash generation is well above the amount needed for optimal reinvestment in our core business,” said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation. “Because we expect to continue to return excess cash to our shareholders through a combination of regular dividends and opportunistic share repurchase, we believe it is appropriate to increase the amount returned through the quarterly dividend.”

 

Target has benefited recently from improving economic conditions. Last quarter, the discount retailer reported a 29% increase in earnings. Wall Street is anticipating another 16% increase this quarter.

 

Dividend investors will be happy to hear that Target is using its excess cash flow to increase their dividend payment. The higher dividend payment will cost Target an additional $235 million each year. However, Target has a strong track record of returning cash to its shareholders and the retailer has now paid dividends for 171 straight quarters (dating back to 1967).

 

The dividend will be payable on September 10 to shareholders of record as of August 20.

 

Recommend This Article To Others:

• 
• 
• 
• 
• 
• 
• 
• 
• 
•