11 Best Retail Dividend Stocks to Buy

7. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 56

Target Corporation (NYSE:TGT) is an American retail corporation, headquartered in Minnesota. The company operates a chain of hypermarkets and discount department stores. The stock has struggled a lot in the past, with the share price falling by nearly 42% in the past 12 months. Customers have been cutting back on spending, which has affected the company’s growth. In addition, the recent tariff issues may lead to a less-favorable spending climate for the company. However, TGT has a strong foundation, which would help it rebound.

Target Corporation (NYSE:TGT) has a strong cash position, providing it with a competitive edge over its peers. In FY24, the company reported an operating cash flow of $7.3 billion. Due to this strong cash position, it was able to return $513 million to shareholders through dividends in the fourth quarter of 2024, compared with $508 million in the prior-year period. Currently, it pays a quarterly dividend of $1.12 per share for a dividend yield of 4.32%, as of March 29. The company is a Dividend King, having raised its payouts for 53 consecutive years, which makes it one of the best dividend stocks on our list.

At the end of Q4 2024, 56 hedge funds tracked by Insider Monkey held stakes in Target Corporation (NYSE:TGT), up from 49 in the previous quarter. The collective value of these stakes is over $1 billion. With nearly 2.6 million shares, Diamond Hill Capital was the company’s leading stakeholder in Q4.