10 Best Consumer Staples Dividend Stocks To Invest In

4. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 56

Target Corporation (NYSE:TGT) is an American retail corporation that operates a chain of hypermarkets and discount department stores. In January, the company reaffirmed its focus on wellness by unveiling plans to launch over 2,000 new products across various categories, including more than 600 exclusive items. In addition, the company is expanding its men’s wellness selection with new offerings, such as Dr. Squatch body care, more products from Dwayne Johnson’s Papatui men’s care line, and a new men’s fragrance from the vegan brand Fin’ery.

Over the past year, Target Corporation (NYSE:TGT) has steadily increased its operating income while preserving a strong financial foundation. Although it carries a relatively high debt load, its cash, cash equivalents, and short-term investments are sufficient to meet short-term obligations. Growing cash reserves and an interest coverage ratio of 11.6 further reinforce its financial stability. Moreover, the company benefits from strong liquidity, supported by a clean balance sheet free of intangible assets and a robust return on invested capital (ROIC) of 11.5%.

Target Corporation (NYSE:TGT) has a strong track record of dividend payments and a solid financial standing. Over the first nine months of 2024, the company generated $4.07 billion in operating cash flow and ended the quarter with $3.4 billion in cash and cash equivalents. This financial stability allowed Target to distribute $516 million to shareholders through dividends. Notably, the company has upheld an impressive 53-year streak of continuous dividend growth, which makes it one of the best dividend stocks in the consumer staples sector. It offers a quarterly dividend of $1.12 per share and has a dividend yield of 3.56%, as of February 24.