10 Magnificent Dividend Growth Stocks to Invest In

4. Target Corporation (NYSE:TGT)

5-Year Average Dividend Growth Rate: 11.23%

Target Corporation (NYSE:TGT) is an American retail corporation, headquartered in Minnesota. The company operates a chain of hypermarkets and discount department stores. It is recognized for its wide selection of products, including apparel, electronics, and home goods. A significant portion of its revenue comes from its owned and exclusive brands, a strategy that not only provides consumers with unique offerings but also helps drive higher profit margins. With a strong omnichannel model, the company ensures a seamless shopping experience across both physical stores and online platforms. The majority of its sales—over 96%—are fulfilled through its brick-and-mortar locations. By leveraging its extensive store network as fulfillment hubs, the company strengthens its competitive position against online-only retailers.

In the fourth quarter of 2024, Target Corporation (NYSE:TGT) reported revenue of $30.9 billion, which fell by 3.1% from the same period last year. However, the revenue beat analysts’ estimates by $83.7 million. Its comparable sales increased by 1.5%, driven by strong customer traffic and digital growth. Sales trends in Apparel and Hardlines improved significantly, accelerating by nearly four percentage points compared to the previous quarter. Digital sales also saw solid growth, rising 8.7% during the period. Additionally, Same-Day delivery, supported by Target Circle 360™, experienced a more than 25% increase year-over-year.

In FY24, Target Corporation (NYSE:TGT) generated over $7.3 billion in operating cash flow. Its strong cash position enabled the company to pay dividends worth $513 million in Q4 2024, compared with $508 million in the prior-year period. Currently, it offers a quarterly dividend of $1.12 per share and has a dividend yield of 3.89%, as of March 9. TGT is one of the best dividend aristocrat stocks as the company has been growing its payouts for 53 consecutive years.