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Target Corp | An Excellent Target for Your Dividend Portfolio

Ticker (Exchange) – TGT (NYSE)

ISIN - US87612E1064

Current price – $158.9

Target price – $177

Growth potential – 11.4%🔥

Dividend yield – 2.7%💵

Investment horizon – 1 year

Target Corp is an American company that operates a retail chain and is one of the largest retailers in the U.S. The American economy is performing better than economists expected, which suggests increased consumer activity that could positively impact Target's stock. The fair value of the company's shares is estimated at $177, with a growth potential of 11.4%. The dividend yield is 2.7%.

Investment thesis

🔼 Strong Financial Performance. Target presented a confident report for Q2 2024. The company’s revenue increased by 2.7% YoY, reaching $25.5 bln. Comparable sales increased by 2%. Adjusted earnings per share (EPS) jumped more than 40% YoY, reaching $2.57. For the full year 2024, Target maintained its forecast for comparable sales growth at 0-2%, but leans towards the lower end of the range. However, in terms of EPS, the company raised its expectations from $8.60-9.60 to $9.00-9.70.

🔼 Dividends and Buybacks. The company shares profits with investors through dividends and stock buybacks. The dividend amount in Q2 2024 increased by 1.9% compared to the previous year, reaching $509 million. Additionally, $155 million was spent on stock buybacks. The current dividend yield stands at 2.7%, which is a decent level. In the context of the Federal Reserve's interest rate cuts, this figure will play an even more significant role.

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Disclaimer

The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.

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