12 Best Dividend Kings to Buy For Safe Dividend Growth

4. Target Corporation (NYSE:TGT)

5-Year Average Annual Dividend Growth Rate: 11.23%

An American retail company, Target Corporation (NYSE:TGT) operates a chain of hypermarkets and discount department stores. The company stands out for its wide-ranging product lineup, which includes apparel, electronics, and home goods. A key driver of its revenue comes from its owned and exclusive brands, which not only provide customers with distinctive offerings but also help boost profit margins.

Target Corporation (NYSE:TGT) has successfully implemented an omnichannel approach, delivering a consistent shopping experience across both physical stores and digital platforms. With over 96% of sales fulfilled through its retail locations, Target effectively utilizes its store network as fulfillment centers, giving it a strategic edge over online-only retailers.

Target Corporation (NYSE:TGT) also benefits from a solid cash position, setting it apart from many of its competitors. In the fiscal year 2024, the company reported $7.3 billion in operating cash flow. This financial strength enabled it to return $513 million to shareholders through dividends in the fourth quarter, slightly up from $508 million during the same period a year earlier. It offers a quarterly dividend of $1.12 per share, translating to a dividend yield of 4.68%, as of April 4. The company has been rewarding shareholders with growing dividends for the past 53 years, which makes it one of the best dividend kings on our list.