8 Magnificent Dividend Growth Stocks to Buy Now

6. Target Corporation (NYSE:TGT)

5-Year Average Annual Dividend Growth Rate: 11.37%

Target Corporation (NYSE:TGT) is a Minnesota-based retail corporation that operates a chain of hypermarkets and discount department stores. The company saw considerable growth throughout the pandemic but has struggled to match those levels since. Nonetheless, the most recent quarterly earnings report brought a note of optimism, driving the stock up by more than 10.3% between August 20 and August 21. TGT has surged by over 8% since the start of 2024 and in the past 12 months, it delivered a staggering return of 40%.

In the second quarter of 2024, Target Corporation (NYSE:TGT) achieved a 2% increase in comparable sales, rebounding from a decline in the prior quarter. This growth included a 0.7% rise in sales at comparable stores and an 8.7% increase in digital sales. Quarterly revenue reached $25.4 billion, marking a 2.7% improvement over the same quarter last year.

These results have boosted Target Corporation (NYSE:TGT)’s confidence, though the company remains cautious about its future. Management expects same-store sales growth to ease, likely ranging from 0% to 2% in the third quarter, with similar growth anticipated for the full year. Despite this, they felt confident enough to increase their earnings forecast for both Q3 and the entire year. The company now projects earnings of about $2.25 per share in Q3 and approximately $9.35 per share for the full year 2024.

Target Corporation (NYSE:TGT) is a solid dividend payer, returning millions to shareholders through payouts every quarter. In the most recent quarter, the company paid $509 million in dividends. The company maintains a 53-year streak of consistent dividend growth and has a five-year average annual dividend growth of 11.37%. With a dividend yield of 2.89% as of November 14, TGT is one of the best dividend aristocrat stocks on our list.