Target Is Putting Pressure on Wal-Mart's Dividend
Target Corp. operates about 1,700 Target and 250 SuperTarget general merchandise stores across the U.S. June 13, the company increased its quarterly dividend 20% to $0.36 per share. The dividend is payable Sept. 10, 2012, to shareholders of record at the close of business Aug. 15, 2012. The yield based on the new payout is 2.5%. WMT's current yield is 2.4%.
TGT has notched double-digit dividend growth every year since 2005. In addition, better-than-expected results led the company to raise its full-year earnings guidance last month by $0.05 cents ($4.60 to $4.80 per share.) Although TGT is trading below my fair value price of $70.56, I am not ready to buy due to a higher level of debt than I am comfortable with, but I am certainty watching it much closer than I have in the past.
Full Disclosure: Long WMT. See a list of all my dividend growth holdings here.
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers
- Why Dividends Matter
- 2011 Was A Great Year For Dividend Stocks
- Utilities Stock Funds Were 2011's Bright Star