Target Corporation is a reliable dividend monarch with 53 years of dividend growth

From Yahoo Finance: 2025-04-17 23:28:00

S&P Dow Jones Indices launched the Dividend Monarchs Index, recognizing US companies that have raised dividends for at least 50 consecutive years. The index outperformed the market, showcasing strong profitability and financial stability, offering lower volatility and smaller drawdowns during market declines.

Target Corporation (NYSE:TGT) is a Dividend Monarch with 53 years of dividend growth. Despite a decline in sales due to shifting consumer habits, the company remains a reliable dividend payer with a 4.85% yield. While it ranks 9th on the list, investors seek deeply undervalued dividend stocks for higher returns.

Hedge funds favor companies with consistent dividend growth, like Target Corporation. Target has a unique retail strategy but faces challenges from changing consumer behavior. Despite a decline in sales and stock value, the company maintains a strong cash position and has been returning dividends to shareholders consistently.

Target Corporation reported a 0.8% decline in net sales for FY24 and a 1% drop in adjusted earnings per share. Despite challenges, the company’s operating cash flow remains strong at $7.3 billion, with a quarterly dividend of $1.12 per share. Target’s 53 years of dividend growth make it a reliable investment option.

Read more: Is Target Corporation (TGT) the Best Dividend Monarch to Invest in Now?