25 Best Dividend Aristocrats to Buy According to Analysts

2. Target Corporation (NYSE:TGT)

Upside Potential as of May 26: 26.2%

Target Corporation (NYSE:TGT) is an American retail corporation with a dividend growth streak spanning over 52 years. The company currently pays a quarterly dividend of $1.10 per share and has a dividend yield of 3.03%, as of May 26. In the first quarter of 2024, the company distributed $508 million to shareholders through dividends, growing from $497 million in dividends paid during the same period last year.

Target Corporation (NYSE:TGT) has been continuously investing in digital transformation, including its mobile app and website, to provide an enhanced shopping experience to its consumers. The stock’s defensive nature makes it an attractive investment opportunity for income investors. However, high interest rates can lead to a decline in consumer spending which could negatively impact the stock. It is trading at a P/E multiple of 15.90, which we believe indicates that it is undervalued, as we expect the company to demonstrate further growth potential. The company’s earnings outlook appears promising, as it plans to expand by opening approximately 300 new stores over the next decade. This will significantly increase its sales volume and overall consumer foot traffic. In the past 12 months, the stock has delivered an 8.51% return to shareholders, as of the close of May 24. Ken Griffin upped his stake in the company by 2,500% during the first quarter of 2024, presenting a bullish stance on the stock.

The number of hedge funds tracked by Insider Monkey owning stakes in Target Corporation (NYSE:TGT) jumped to 67 in Q1 2024, from 58 in the previous quarter. These stakes are collectively valued at over $2.2 billion. With nearly 3 million shares, Diamond Hill Capital was the company’s leading stakeholder in Q1.