Target Corporation (NYSE:TGT) Plans $1.16 Quarterly Dividend

Key Points

• Target declared a quarterly dividend of $1.16 per share, payable December 1 to shareholders of record November 11. The dividend implies an annualized yield of approximately 3.0%, with November 10 set as the ex-dividend date.
• Target has raised its dividend for 54 consecutive years. Its 56.8% payout ratio is supported by earnings, while analysts expect a future payout ratio of about 49.5% based on projected earnings.
• The retailer reported quarterly earnings of $4.11 per share, well above the $2.35 consensus estimate, on revenue of $26.54 billion. Despite the strong results, analysts’ consensus rating remains Hold, with an average price target of $159.52.

Target Corporation (NYSE:TGT - Get Free Report) announced a quarterly dividend on Wednesday, September 23rd. Shareholders of record on Wednesday, November 11th will be given a dividend of 1.16 per share by the retailer on Tuesday, December 1st. This represents a c) dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Tuesday, November 10th.

Target has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 54 consecutive years. Target has a payout ratio of 56.8% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Target to earn $9.38 per share next year, which means the company should continue to be able to cover its $4.64 annual dividend with an expected future payout ratio of 49.5%.

Target Price Performance

Shares of TGT traded down $2.85 during mid-day trading on Wednesday, hitting $156.17. 2,897,642 shares of the stock were exchanged, compared to its average volume of 5,246,120. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.36 and a current ratio of 0.99. The company has a market cap of $70.95 billion, a PE ratio of 16.22, a price-to-earnings-growth ratio of 2.94 and a beta of 0.99. Target has a 52-week low of $83.44 and a 52-week high of $170.75. The firm has a 50-day moving average of $153.26 and a two-hundred day moving average of $135.25.

Target (NYSE:TGT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 19th. The retailer reported $4.11 earnings per share for the quarter, topping the consensus estimate of $2.35 by $1.76. The company had revenue of $26.54 billion for the quarter, compared to analysts' expectations of $26.13 billion. Target had a net margin of 4.08% and a return on equity of 23.23%. Target's quarterly revenue was up 5.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.05 earnings per share. Target has set its FY 2026 guidance at 9.900-10.900 EPS. On average, equities analysts predict that Target will post 8.85 earnings per share for the current year.

Analyst Ratings Changes

TGT has been the topic of several analyst reports. The Goldman Sachs Group boosted their price objective on Target from $127.00 to $161.00 and gave the stock a "neutral" rating in a research note on Thursday, August 20th. Barclays raised their price objective on Target from $115.00 to $140.00 and gave the company an "underweight" rating in a research note on Wednesday, August 19th. Telsey Advisory Group boosted their target price on Target from $170.00 to $182.00 and gave the company an "outperform" rating in a research report on Thursday, August 20th. JPMorgan Chase & Co. increased their price target on Target from $129.00 to $157.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Finally, Robert W. Baird set a $170.00 price target on Target in a research report on Thursday, August 20th. Eleven equities research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $159.52.

About Target

Target Corporation is a general merchandise retailer that operates stores and digital shopping channels across the United States. Its assortment includes apparel and accessories, beauty products, home furnishings and décor, electronics, toys, sporting goods, household essentials, groceries and other everyday merchandise.

Target offers a combination of in-store and digital services, including order pickup, Drive Up and same-day delivery through Shipt. The company also develops and sells a broad portfolio of owned brands, while offering national-brand products and merchandise through a range of seasonal and specialty categories.

The company traces its history to the Dayton Company, founded in Minneapolis in 1902.

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