Dividend Kings List: Top 15

11. Target Corporation (NYSE:TGT)

Dividend Yield as of December 3: 3.43%

Target Corporation (NYSE:TGT) is a Minnesota-based retail corporation that operates a chain of hypermarkets and discount department stores. The stock has declined by more than 8.5% since the beginning of 2024 due to persistent macroeconomic challenges. A major hurdle Target currently faces is its product mix. As reported by CNBC, over half of the retailer’s offerings fall into the discretionary category, putting it at a disadvantage compared to competitors that focus primarily on essentials like groceries. Another problem the company is dealing with involves pricing. Although it reduced many prices ahead of the holiday season, it only saw a small uptick in foot traffic. This suggests that the pricing adjustments may not be enough to address the challenges.

In the third quarter of 2024, Target Corporation (NYSE:TGT) reported revenue of $25.7 billion, which showed a modest growth of 1.06% from the same period last year. The revenue missed analysts’ estimates by $231.8 million. For the fourth quarter, the company anticipates comparable sales to remain roughly unchanged, with GAAP and Adjusted EPS ranging from $1.85 to $2.45. This leads to a full-year forecast for GAAP and Adjusted EPS between $8.30 and $8.90.

Though Target Corporation (NYSE:TGT) did not meet investor and analysts’ estimates, its cash position is still stable to support its dividends. In the first nine months of 2024, the company generated $4.07 billion in operating cash flow. It ended the quarter with $3.4 billion available in cash and cash equivalents. During the quarter, the company returned $516 million to shareholders through dividends. It currently pays a quarterly dividend of $1.12 per share and has a dividend yield of 3.43%, as of December 3. With a dividend growth streak of 53 years, TGT is one of the best dividend kings on our list.

As of the end of Q3 2024, 49 hedge funds owned stakes in Target Corporation (NYSE:TGT), compared with 52 in the previous quarter, as per Insider Monkey’s database. These stakes are worth nearly $1.4 billion in total. With nearly 3 million shares, Diamond Hill Capital owned the largest stake in the company.