8 Best Dividend Kings To Invest In For Safe Dividend Growth

5. Target Corporation (NYSE:TGT)

5-Year Average Annual Dividend Growth Rate: 11.30%

Target Corporation (NYSE:TGT) is an American retail corporation, based in Minnesota. The company operates a chain of hypermarkets and discount department stores. Although a strong labor market and rising consumer confidence indicate a stable US economy, the lingering effects of price inflation in recent years and persistently high interest rates continue to pressure certain areas of consumer spending. Due to this, the stock is down by nearly 6% so far this year.

In the third quarter of 2023, Target Corporation (NYSE:TGT) posted revenue of $25.7 billion, reflecting a slight 1.06% increase compared to the same period last year. However, this figure fell short of analysts’ expectations by $231.8 million. Looking ahead to Q4, the company expects comparable sales to remain stable, with projected GAAP and Adjusted EPS between $1.85 and $2.45. For the full year, it forecasts GAAP and Adjusted EPS in the range of $8.30 to $8.90.

Despite falling short of investor and analyst expectations, Target Corporation (NYSE:TGT) maintains a solid financial position to sustain its dividend payouts. Over the first nine months of 2024, the company generated $4.07 billion in operating cash flow and closed the quarter with $3.4 billion in cash and cash equivalents. During the same period, the company distributed $516 million to shareholders through dividends. Currently, it offers a quarterly dividend of $1.12 per share, yielding 3.31% as of December 9. With an impressive 53-year streak of dividend growth, Target stands out as one of the best dividend kings.

Target Corporation (NYSE:TGT) was a part of 49 hedge fund portfolios at the end of Q3 2024, compared with 52 in the previous quarter, as per Insider Monkey’s database. The stakes held by these funds have a collective value of nearly $1.4 billion. With nearly 3 million shares, Diamond Hill Capital owned the largest stake in the company.