15 Best Dividend Stocks To Buy and Hold

11. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 49

Target Corporation (NYSE:TGT) is a Minnesota-based retail corporation that operates a chain of hypermarkets and discount department stores. The company has shown consistent growth in operating income over the past year while maintaining a strong financial position. Although its debt levels are on the higher side, its cash, cash equivalents, and short-term investments are adequate to meet near-term obligations. The company’s increasing cash reserves and an interest coverage ratio of 11.6 further strengthen its financial stability. Its liquidity is supported by a clean balance sheet with no intangible assets and a solid return on invested capital (ROIC) of 11.5%.

Target Corporation (NYSE:TGT) is a strong dividend payer with solid balance sheet. In the first nine months of 2024, the company reported an operating cash flow of $4.07 billion. It ended the quarter with $3.4 billion in cash and cash equivalents. This cash position enabled the company to return $516 million to shareholders through dividends. It currently pays a quarterly dividend of $1.12 per share and has a dividend yield of 3.31%, as of February 4. It is one of the best dividend stocks on our list as the company has been rewarding shareholders with growing dividends for 53 consecutive years.

As per Insider Monkey’s database of Q3 2024, 49 hedge funds held stakes in Target Corporation (NYSE:TGT), compared with 52 in the previous quarter. The total value of these stakes is more than $1.4 billion.