Friday, June 11, 2021

Dividend Increase #51 of 2021 - Target Corporation (TGT)


Tuesday, June 9th the Board of Directors of Target Corporation (TGT) announced a quarterly dividend increase of from $ 0.68 to $ 0.90 per share that’s payable September 10, 2021 to holders of record August 18, 2021. This represents a 32.35% increase over the last quarterly dividend.


Michael Fiddelke, executive vice president and chief financial officer of Target Corporation, said "The dividend increase we're announcing today reflects our ongoing commitment to disciplined capital deployment, with priorities that have remained consistent for decades: We first look to invest fully in our business, in projects that meet our strategic and financial criteria. We then look to support our dividend, and build on our record of increasing the annual dividend, which we've maintained for nearly 50 years. And finally, over time, we look to return any other excess cash through share repurchases, within the limits of our strong, middle-A credit ratings. Given strong operating performance and cash generation, our business is well-positioned to support this robust increase in the dividend, even as we ramp up capital investments in our business and continue to invest in our team."


With current price $ 231.66 (yesterday's close), this raise brings their dividend yield to 1.55%.


Target is a Dividend Champions with a 54 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 3.1, 3.2, 4.4 and 12.3 (Dividend Champions.xls)



Since I own 115 shares of TGT, this will increase my portfolio's projected annual net dividend income by $ 75.39.


This dividend increase was very much higher than I expected. I was expecting an increase of about ten percent.


This is the seventh dividend increase I've received from Target Corporation since initiating a position in June 2014. (More here) During this period, the quarterly dividend has risen pleasantly from $ 0.52 to $ 0.90, or 73.1 percent.


This increase raises my YOC to 6.13%.



Summary of 2021 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long TGT


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