Target corporation increases quarterly dividend by 1.8 percent

Published 12/06/2025, 11:36
Target corporation increases quarterly dividend by 1.8 percent

MINNEAPOLIS - Target Corporation (NYSE: TGT), the $44.6 billion retailer trading at an attractive P/E ratio of 10.7, announced today a 1.8% increase in its quarterly dividend to $1.14 per common share, up from the previous $1.12, bringing the dividend yield to 4.57%.

The dividend will be payable on September 1, 2025, to shareholders of record as of August 13, 2025, according to a press release statement from the company. According to InvestingPro analysis, Target maintains strong dividend coverage with sufficient cash flows to cover its obligations.

This marks Target’s 232nd consecutive dividend payment since becoming publicly held in October 1967. With this increase, 2025 is set to become the 54th consecutive year in which Target has raised its annual dividend.

Target operates nearly 2,000 stores across the United States and serves customers through its Target.com platform. The Minneapolis-based retailer has maintained a consistent dividend payment history for over five decades.

The dividend announcement comes as part of Target’s regular quarterly financial activities and represents a continuation of the company’s long-standing dividend policy.

In other recent news, Walmart has been recognized for its achievement in reaching e-commerce profitability on an enterprise level during the first quarter, as highlighted by Bernstein analysts. This sets Walmart apart from other retailers facing margin pressures due to e-commerce growth. The analysts reiterated an Outperform rating for Walmart with a price target of $108.00, underscoring the company’s strategic investments and potential for long-term improvements in e-commerce profitability. Meanwhile, Target Corporation’s outlook has been adjusted by Fitch Ratings to Negative, reflecting operational challenges and a projected decline in EBITDA by over 10% in 2025. Despite these challenges, Fitch maintains an ’A’ Long-Term Issuer Default Rating for Target, citing its strong market position and cash flow generation.

TD Cowen analysts have initiated coverage on Target with a Hold rating and a $105.00 price target, noting the company’s competitive pressures and cost inefficiencies. Guggenheim Securities has reduced Target’s price target from $155.00 to $115.00, maintaining a Buy rating despite challenges in comparable store sales and earnings expectations. The firm projects a 2.5% decline in comp sales and a 40 basis point reduction in EBITDA margin for the remainder of the year. RBC Capital Markets has also adjusted its price target for Target to $103.00, maintaining an Outperform rating. The firm anticipates competitive and margin challenges in the upcoming quarters, with revised EPS projections reflecting these hurdles. These recent developments provide insight into the current landscape for Walmart and Target, two major players in the retail sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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