Dividend Increase – Target ( TGT )
June is shaping up to be a great month so far. Today I read that the board of directors for Target has decided to increase their dividend to $0.62. This represents a 3.3% increase. This is a nice increase considering that the stock is currently yielding 4.32%. This dividend will be paid in September which will also be the 200th consecutive quarter that Target has paid a dividend. They also have increased their dividend for 46 years. Not a bad streak at all.
If you remember, I made my first purchase of Target back in July of last year. Then in January of this year, I decided to double my holdings of Target when the stock started declining. I would like to strengthen my position some more but do not want it to be over weighted. Despite the share price of Target dropping over the past few months, I still consider their dividend sustainable. So for now, I will keep my position as it is. This increase only added about $0.36 to my next dividend payment but every little bit helps.
I imagine a lot of other DGI bloggers are also holding Target in their portfolios. So congrats on the increases that you’ll received as well.
I’m looking forward to reading your comments and questions.
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As always I hope that everyone is doing good out there and happy investing.
I always love to see my dividends increase. Target has had a couple of pretty big dividend increase over the past couple of years, so it stands to reason that they might have to slow it down a bit. Even though it “only” added $0.36 to your dividend payment, any increase is a chance to see compounding in action.
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Congratulations on the raise! Always great to wake up and see your passive dividend income growing 🙂
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Every little bit does help, you are absolutely right. I was hoping fora 6%-8% increase this year, and I was a little disappointed that it wasn’t closer to what I was expecting. With that being said, I am not shocked given the recent history the company has had. I’ll continue to take the increases and hope for more once the company’s restructuring plan is complete.
Thanks for the summary. Glad you were able to increase your dividend income!
A raise is a raise, and 3.33% beats inflation (at least in the US where I live). With TGT yielding 4.32%, the 3.33% raise is smaller than I like to see. But TGT is repositioning itself now and we need to be patient…
Take care and happy investing!
Nice! I added 10 shares of TGT when amazon bought WFM. I initiated TGT at 57$, I wrote that I want added more shares until it falls below $50. TGT and Walmart are pretty solid right now as they modifying their business to compete with amazon. I know someone who work for them in the IT department (no longer there), but their IT department is very progressive, they will come through.
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They dividend is nice. But I’m not certain about the long term prospects of Target. How is Target going to compete against Amazon? They have even less financial firepower than Walmart
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