15 Best Stocks For Dividends

6. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 67

Target Corporation (NYSE:TGT) is a Minnesota-based retail corporation that operates a chain of discounted department stores and hypermarkets. The company has consistently emphasized creating innovative shopping experiences for its customers. Furthermore, it is enhancing its e-commerce footprint by expanding its focus on marketplace initiatives. This emphasis on e-commerce enabled the company to achieve strong returns during the 2020 pandemic. TGT saw its stock price increase by over 100% from March 2020 to March 2021. Additionally, the company’s revenue showed a positive trend from 2020 to 2022 and declined in 2023.

Since the pandemic, Target Corporation (NYSE:TGT) has faced challenges in returning to those levels due to supply chain disruptions, inflationary pressures, and reduced consumer spending on non-essential items. In the first quarter of 2024, the company reported revenue of $24.5 billion, a decrease of 3.12% from the same period the previous year. Comparable sales, while meeting expectations, also declined by 3.7% compared to the prior-year period. Nevertheless, the company is actively addressing these challenges by giving its customers what they demand. Online shopping has become increasingly popular in recent times. Recently, the company announced a partnership with Shopify, a global e-commerce platform, to showcase a variety of popular merchants and their products on Target Plus. This collaboration aims to enhance the company’s third-party digital marketplace, offering customers a curated assortment of products. Since the start of 2024, the stock has gained nearly 6% and its 12-month returns came in at over 16%.

Target Corporation (NYSE:TGT) is a strong dividend payer, consistently growing its dividends for 53 consecutive years. In the first quarter of 2024, the company returned $508 million to shareholders through dividends, up from $497 million in the prior-year period. It currently pays a quarterly dividend of $1.12 per share for a dividend yield of 2.96%, as of July 15.

Target Corporation (NYSE:TGT) was a popular buy among elite money managers at the end of Q1 2024 as hedge fund positions in the company jumped to 67, from 58 in the preceding quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds are collectively worth over $2.26 billion. With roughly 3 million shares, Diamond Hill Capital was the company’s leading stakeholder in Q1.