5 Undervalued Dividend Kings To Buy In 2022

1. Target Corporation (NYSE:TGT)

Dividend Yield as of February 24: 1.88%

Number of Hedge Fund Holders: 49

Number of Years of Consecutive Dividend Increases: 50

P/E Ratio: 14.10

Target Corporation (NYSE:TGT), an American big-box store company, made it to our list of the undervalued dividend kings to buy in 2022 since the company has delivered consecutive dividend increases for 50 years and offers a P/E ratio of 14.10. 

On January 13, Target Corporation (NYSE:TGT) declared a $0.90 per share quarterly dividend, in line with previous. The dividend is payable on March 10, for shareholders of record on February 16. 

Cowen analyst Oliver Chen lowered the price target on Target Corporation (NYSE:TGT) to $265 from $300 and kept an Outperform rating on the shares. Chen said longer-term, he believes Target Corporation (NYSE:TGT) will be better positioned to work through inflationary challenges over the coming quarters, and benefit from a more resilient consumer, balanced category mix, and broad-based market share growth. The stock trades at a modest valuation.

A total of 49 hedge funds were bullish on Target Corporation (NYSE:TGT) in Q4 2021, with collective stakes amounting to $3.9 billion. Rajiv Jain’s GQG Partners is the biggest shareholder of the company, with 4.90 million shares worth $1.13 billion. 

Here is what Nelson Capital Management has to say about Target Corporation (NYSE:TGT) in its Q2 2021 investor letter:

“We added Target (tkr: TGT) to our consumer staples sector. Target Corporation (NYSE:TGT) offers a broad array of products in owned and known brand items at affordable prices. Its omni-channel fulfillment centers allow customers to receive their items via in-store pickup, curbside pickup, same-day shipping and regular shipping while simultaneously reducing operating costs. With a significantly lower valuation than peers and a unique operating strategy, Target is an attractive holding.”

You can also take a look at 10 Best Pharmaceutical Stocks to Buy in 2022 and 10 Best Mid Cap Stocks To Buy In 2022 .

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