Seeking Alpha

Target Corporation declares $0.52 dividend

  • Target Corporation (TGT) declares $0.52/share quarterly dividend, 20.9% increase from prior dividend of $0.43.
  • Forward yield 3.66%
  • Payable Sept. 10; for shareholders of record Aug. 20; ex-div Aug. 18.
Comments (24)
  • mbn
    , contributor
    Comments (599) | Send Message
     
    Much larger increase than I expected. In fact, based on what WMT did, I actually expected an increase in the single digit range.

     

    Very pleased. The 1st step toward re-gaining public trust. A small step, but a vital one.

     

    Now go fix the issues in Canada.
    11 Jun 2014, 02:13 PM Reply Like
  • Bingy77
    , contributor
    Comments (158) | Send Message
     
    Wow i am actually very shocked by this increase.. management must feel very certain about their future.

     

    Long tgt
    11 Jun 2014, 02:13 PM Reply Like
  • MintyFresh32
    , contributor
    Comments (372) | Send Message
     
    Either that or they feel a lot of pressure to compensate shareholders for the recent turmoil and price declines. I love the large raise, but it comes at the expense of a much higher payout ratio. See http://bit.ly/1lfB1Es
    11 Jun 2014, 09:55 PM Reply Like
  • chammond63
    , contributor
    Comments (102) | Send Message
     
    Wow, this is going to surprise a lot of people. Looks like they're going with the BP strategy of hiking the dividend as they attempt to regain public confidence
    11 Jun 2014, 02:15 PM Reply Like
  • Big Thunder
    , contributor
    Comments (654) | Send Message
     
    In the Q1 conference call they announced their intention to increase the dividend about as much as they had last year. Very glad to see they carried through with that!
    11 Jun 2014, 02:24 PM Reply Like
  • AnAvgJoe
    , contributor
    Comments (398) | Send Message
     
    BOOM!
    11 Jun 2014, 02:29 PM Reply Like
  • Slick E
    , contributor
    Comments (134) | Send Message
     
    Did not see that coming.
    11 Jun 2014, 02:31 PM Reply Like
  • RSRinehart
    , contributor
    Comments (459) | Send Message
     
    A very positive sign. TGT gets ever more tempting.
    11 Jun 2014, 02:42 PM Reply Like
  • Cheesehusker
    , contributor
    Comments (315) | Send Message
     
    Awesome - time to buy even more
    11 Jun 2014, 02:42 PM Reply Like
  • User 5935901
    , contributor
    Comments (44) | Send Message
     
    Target must be desperate to keep investors from fleeing. I would prefer a steady increase over a massive increase, since historically dividend growth outperforms dividend yield, but its always nice to see more money flowing to shareholders.
    11 Jun 2014, 03:13 PM Reply Like
  • Eric Landis
    , contributor
    Comments (1270) | Send Message
     
    Just doubled my position with a new buy at $57.15.

     

    Not too often you get a forward yield of 3.6% with Target.
    11 Jun 2014, 03:37 PM Reply Like
  • Dividend Growth Jedi
    , contributor
    Comments (360) | Send Message
     
    come on guys, read a 10-k or conference call once in awhile instead of the articles...this was all there and shouldn't have been a surprise to anyone
    11 Jun 2014, 03:46 PM Reply Like
  • Bingy77
    , contributor
    Comments (158) | Send Message
     
    Yes I read it and listened to the call, but with Canada and the credit card crisis, it is hard to believe they would continue with the 20% unless they see improvement.

     

    Saying and doing are two different things.. cough cough ARCP
    11 Jun 2014, 03:53 PM Reply Like
  • chammond63
    , contributor
    Comments (102) | Send Message
     
    You can't tell me you expected a 20% dividend hike..
    11 Jun 2014, 03:56 PM Reply Like
  • Dividend Growth Jedi
    , contributor
    Comments (360) | Send Message
     
    ok Chammond

     

    "We returned $272 million in dividends this quarter, up from $232 million last year as our $0.43 per share quarterly dividend was more than 19% higher than a year ago. We plan to recommend that our Board authorize another similar increase this summer."

     

    Bingy,
    I don't think tgt management are liars. They stick to what they say. Sure they botched some things and made mistakes but it doesn't mean theyd lie to shareholder to upset them in a time theyre already upset.
    11 Jun 2014, 04:20 PM Reply Like
  • chammond63
    , contributor
    Comments (102) | Send Message
     
    Their payout ratio increased from 29% in 2013 to 51% in 2014. I'd like to think I have a right to be skeptical of another dividend hike from TGT like that which was announced today
    11 Jun 2014, 04:30 PM Reply Like
  • Dividend Growth Jedi
    , contributor
    Comments (360) | Send Message
     
    Very true
    Suspending the buyback freed up a lot of cash too. They spent more on buybacks in 2013 than dividends.
    11 Jun 2014, 04:40 PM Reply Like
  • chammond63
    , contributor
    Comments (102) | Send Message
     
    Agreed. I doubt many investors view the suspension of the buyback as all that unfavorable given the rate at which TGT's share outstanding have decreased over the past several years. I expect this dividend hike to be the catalyst TGT needs to outperform WMT, which continues to remain range bound
    11 Jun 2014, 04:47 PM Reply Like
  • Mvkingfish
    , contributor
    Comments (64) | Send Message
     
    As a retiree, I'll take 3.6% while I wait for a stock that's probably near the bottom.
    11 Jun 2014, 03:59 PM Reply Like
  • SteveTheHawk
    , contributor
    Comments (1606) | Send Message
     
    Allow me to join the chorus and say that I never expected that much of an increase. TGT is about 3% of our div portfolio. I'm not ready to take that higher, but I must say that I'm glad I didn't sell.

     

    That's a lovely increase. It might even help offset the lousy WMT increase this year.
    11 Jun 2014, 04:58 PM Reply Like
  • FleetUSA3226
    , contributor
    Comments (803) | Send Message
     
    Yep, they said they would do that.
    11 Jun 2014, 05:00 PM Reply Like
  • Dividend Accumulator
    , contributor
    Comments (26) | Send Message
     
    No surprise at all. As others have mentioned, they explicitly announced they would increase it 20% later this year in Q1 Earnings report. This was already with the known issues in Canada and Privacy / Credit Card breach. My only reason for hesitation and the only thing that has changed since is a new CEO which could have changed course. I'm glad to see shareholders being put first! (As I am one of them and TGT is one of my top two biggest holdings by % along with COH) I'll gladly sit on the 3.6% dividend even if they reduce future dividend growth moving forward since earnings aren't increasing at the same rate, and when the business recovers we will see 20-30 short term capital gains upside in the next several years. Great news for TGT shareholders!
    11 Jun 2014, 05:50 PM Reply Like
  • 9895461
    , contributor
    Comments (87) | Send Message
     
    A 20% raise is a nice way to start the morning. :)
    12 Jun 2014, 06:04 AM Reply Like
  • Tradevestor
    , contributor
    Comments (4104) | Send Message
     
    Here is a quick analysis of Target's dividend increase

     

    http://seekingalpha.co...
    12 Jun 2014, 08:14 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs