Target Corporation has an impressive track record of 57 consecutive years of dividend increases, but faces challenges due to softening sales and pressure on margins. The retailer plans to invest $5 billion in 2026 to protect the dividend and drive growth.

Target is underperforming in the market, with a 40% stock decline in the last five years. Earnings per share have also decreased, with a projected dip in free cash flow for fiscal 2027.

To protect its dividend streak, Target is focusing on streamlining operations, expanding its owned brands, and increasing capital spending. The company aims to improve profit margins and drive growth through strategic investments and operational changes.

Target is transforming its stores into mini-distribution centers to fulfill online orders efficiently. The company is also leveraging its membership program and expanding private-label brands to drive sales and margins.

Investors are watching closely to see if Target’s investment plan will reverse recent sales trends and restore growth. The company remains committed to maintaining its dividend streak and regaining its competitive edge in the retail market.

Read more at Yahoo Finance: 57-year-old Dividend King makes $5 billion move to protect payout