Checking in on the health of this unusually high dividend yield.
Target (NYSE:TGT) has found a way to thrive in a brutally
competitive industry. The retailer's fashionable products and national network
of locations helped it produce strong earnings growth over the past few decades
as demand for general merchandise expanded with a growing population. Those
profit gains have, in turn, translated into consistently rising dividends for
shareholders.
That formula isn't looking as robust these days as Target
wraps up what could be its second straight year of flat or declining sales.
With that challenging selling environment in mind, let's look at the prospects
for this retailer's dividend.
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