Target Corporation (TGT): An Attractively Valued Dividend Champion on Sale


Target Corporation (NYSE:TGT) operates general merchandise stores in the United States and Canada. Target is a dividend champion, which has paid dividends since 1965 and raised them every year for 48 years in a row.

The most recent dividend increase was in June 2015, when the Board of Directors approved a 7.70% increase in the quarterly dividend to 56 cents/share.

Among the hedge funds tracked by Insider Monkey, 34 investors reported long positions in Target Corporation worth $1.10 billion in aggregate as of the end of March, down from 38 funds holding $1.29 billion worth of shares a quarter earlier. These funds held around 2.20% of Target’s outstanding stock. Principal Global Investors’ Columbus Circle Investors owns 2.36 million shares of Target Corporation as of the end of March.

The company’s largest competitors include Wal-Mart Stores, Inc. (NYSE:WMT), Costco Wholesale Corporation (NASDAQ:COST) and Amazon.com, Inc. (NASDAQ:AMZN).

Over the past decade this dividend growth stock has delivered an annualized total return of 6.30% to its shareholders. Future returns will be dependent on growth in earnings and dividend yields obtained by shareholders.


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