Target Corp’s (TGT) board of directors has announced a quarterly dividend of $0.90 per common share, up from a dividend of $0.68 in the previous quarter.
The dividend is payable on September 10th to shareholders of record as of the close of business on August 18th, the company said.
“The dividend increase we’re announcing today reflects our ongoing commitment to disciplined capital deployment, with priorities that have remained consistent for decades: We first look to invest fully in our business, in projects that meet our strategic and financial criteria. We then look to support our dividend, and build on our record of increasing the annual dividend, which we’ve maintained for nearly 50 years. And finally, over time, we look to return any other excess cash through share repurchases, within the limits of our strong, middle-A credit ratings,” Michael Fiddelke, Target’s Executive Vice President and Chief Financial Officer, said in a press release.
”Given strong operating performance and cash generation, our business is well-positioned to support this robust increase in the dividend, even as we ramp up capital investments in our business and continue to invest in our team,” Fiddelke added.
Shares of Target Corp closed lower for the third time in the past ten trading sessions in New York on Wednesday. The stock went down 1.34% ($3.16) to $231.94, after touching an intraday high at $236.77 and also a fresh all-time high.
Shares of Target Corporation have risen 31.39% so far in 2021 compared with a 12.34% gain for the benchmark index, S&P 500 (SPX).
In 2020, Target Corp’s stock went up 37.69%, thus, it again outperformed the S&P 500, which registered a 16.26% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 16 out of 20 surveyed investment analysts had rated Target Corp’s stock as “Buy”, while 4 – as “Hold”. The median price target on the stock stands at $249.50.