Target Corporation (NYSE:TGT) is included among the 12 Best Stocks to Buy Now for Passive Income.  How Target’s (TGT) Dividend History Strengthens its Passive Income Appeal Target Corporation (NYSE:TGT) ranks among the largest retailers in the US and is one of the few national chains offering a broad range of products. Throughout most of its history, it has been a reliable growth driver. The company operates across urban, suburban, and rural areas, with stores in all 50 states. Although Target Corporati ...

Core Insights - Dividends are a reliable source of income for shareholders, with healthy and growing dividend-paying stocks typically maintaining regular payouts regardless of economic conditions [1] - A decline in stock prices can lead to higher dividend yields, as the yield is calculated by dividing the total annual payout by the current share price [2] Company Summaries - **United Parcel Service (UPS)**: - The stock has decreased by approximately 33% year to date, currently yielding 7.8%, which translates to an expected annual income of about $390 for a $5,000 investment [4] - The decline is attributed to economic uncertainties, reduced online shopping, and a strategic reduction in business with Amazon [4][5] - The forward-looking price-to-earnings (P/E) ratio is 11.3, significantly below its five-year average of 15.8, indicating potential value [5] - **Target**: - Target has reported net sales of $107 billion in 2024 and operates 1,989 stores in the U.S., employing over 400,000 people [8] - The stock has fallen about 35% year to date, influenced by the abandonment of its diversity, equity, and inclusion (DEI) policy and ongoing supply chain issues [9]

Core Insights - Target Corporation is launching an innovative accessible self-checkout experience designed for guests with disabilities, particularly those who are blind or have low vision, starting this holiday season and continuing into early 2026 [1][3][5] - The initiative is part of Target's broader commitment to enhancing accessibility and creating joyful shopping experiences for all customers [1][3] Company Initiatives - The accessible self-checkout system includes features such as tactile controllers, audio prompts, Braille, high-contrast button icons, and a headphone jack with adjustable volume controls [4][5] - This project was developed in collaboration with the National Federation of the Blind (NFB), ensuring that the design was informed by the experiences and needs of the blind community [3][5] Market Positioning - Target's focus on accessibility positions the company as an industry leader in inclusive retail solutions, aiming to enhance the shopping experience for individuals with disabilities [3][5] - Recent Harris Poll data indicates that 61% of shoppers prioritize small moments of joy during the holiday season, highlighting the importance of customer experience improvements [5]

Core Insights - Walmart Inc. and Target Corporation are two major players in the U.S. retail sector, each with distinct strategies and strong market positions [1][3] - Both companies reported second-quarter results that demonstrate resilience despite a challenging consumer environment [1] Walmart Overview - Walmart operates over 10,500 stores in 19 countries, focusing on "everyday low prices" across various categories including groceries and digital businesses [2] - The company has a market capitalization of approximately $819 billion, showcasing its scale and value-driven model [3] - Walmart's omnichannel strategy, including curbside pickup and same-day delivery, has driven a 25% increase in global e-commerce sales in the second quarter of fiscal 2026 [4] - Walmart Connect, the advertising business, is creating a high-margin revenue stream, while the Walmart+ membership program enhances customer loyalty [5] - Significant investments in AI, automation, and supply chain efficiency are central to Walmart's strategy, helping to maintain low prices and protect profitability [6] - Walmart's international operations, particularly in markets like China and Flipkart, contribute to its growth and risk diversification [7] - For fiscal 2026, Walmart anticipates consolidated net sales growth of 3.75-4.75% and adjusted operating income growth of 3.5-5.5% [8] Target Overview - Target operates nearly 2,000 stores, emphasizing a blend of affordability and style, and utilizes its stores as fulfillment hubs for e-commerce [2][9] - The company has a market capitalization of around $40 billion, reflecting its brand-focused strategy [3] - Target's brand identity and customer loyalty initiatives, such as the Target Circle program, are key strengths [11] - In the second quarter of 2025, Target deployed over 10,000 AI licenses to enhance operational efficiency and customer experience [12] - Target's comparable sales declined by 1.9% in the second quarter of fiscal 2025, with expectations of a low-single-digit sales decline for the fiscal year [14] - The Zacks Consensus Estimate indicates a year-over-year sales decline of 1.3% and a significant EPS decline of 15.5% for Target in the current fiscal year [18] Stock Performance and Valuation - Over the past year, Walmart shares have increased by 29.2%, while Target shares have decreased by 43.8% [21] - Walmart's forward P/E ratio is 36.69, above its historical median, while Target's forward P/E is 11, below its one-year median, indicating relative undervaluation for Target [24] - Despite valuation favoring Target, Walmart's stronger momentum and growth prospects position it as the better investment option currently [26]

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence, favoring companies with high free cash flows and substantial dividend payouts [1] Group 1: Conagra Brands, Inc. (NYSE: CAG) - Conagra Brands has a dividend yield of 7.74% [7] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and raised the price target from $20 to $21 on Sept. 24, 2025, with an accuracy rate of 65% [7] - UBS analyst Bryan Adams maintained a Neutral rating and reduced the price target from $20 to $19 on Sept. 24, 2025, with an accuracy rate of 66% [7] - Conagra Brands will release its fiscal 2026 first quarter results on Wednesday, Oct. 1, 2025 [7] Group 2: Target Corporation (NYSE: TGT) - Target Corporation has a dividend yield of 5.23% [7] - Evercore ISI Group analyst Greg Melich maintained an In-Line rating and cut the price target from $106 to $105 on Sept. 23, 2025, with an accuracy rate of 78% [7] - UBS analyst Michael Lasser maintained a Buy rating and reduced the price target from $135 to $130 on Aug. 21, 2025, with an accuracy rate of 79% [7] - On Sept. 22, Target received notice of an unsolicited mini-tender offer by TRC Capital Corporation to purchase up to 1,500,000 shares at $89.00 per share [7] Group 3: The Campbell's Company (NASDAQ: CPB) - The Campbell's Company has a dividend yield of 4.84% [7] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and raised the price target from $32 to $33 on Sept. 5, 2025, with an accuracy rate of 65% [7] - TD Cowen analyst Robert Moskow maintained a Hold rating and increased the price target from $29 to $31 on Sept. 4, 2025, with an accuracy rate of 65% [7] - On Sept. 3, Campbell Soup reported fourth-quarter EPS above estimates [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Conagra Brands, Inc. (NYSE: CAG) - Conagra Brands has a dividend yield of 7.74% [7] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and raised the price target from $20 to $21 on Sept. 24, 2025, with an accuracy rate of 65% [7] - UBS analyst Bryan Adams maintained a Neutral rating and reduced the price target from $20 to $19 on Sept. 24, 2025, with an accuracy rate of 66% [7] - Conagra Brands will release its fiscal 2026 first quarter results on Wednesday, Oct. 1, 2025 [7] Group 2: Target Corporation (NYSE: TGT) - Target has a dividend yield of 5.23% [7] - Evercore ISI Group analyst Greg Melich maintained an In-Line rating and cut the price target from $106 to $105 on Sept. 23, 2025, with an accuracy rate of 78% [7] - UBS analyst Michael Lasser maintained a Buy rating and reduced the price target from $135 to $130 on Aug. 21, 2025, with an accuracy rate of 79% [7] - On Sept. 22, Target received notice of an unsolicited mini-tender offer by TRC Capital Corporation to purchase up to 1,500,000 shares at $89.00 per share [7] Group 3: The Campbell's Company (NASDAQ: CPB) - Campbell's Company has a dividend yield of 4.84% [7] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and raised the price target from $32 to $33 on Sept. 5, 2025, with an accuracy rate of 65% [7] - TD Cowen analyst Robert Moskow maintained a Hold rating and increased the price target from $29 to $31 on Sept. 4, 2025, with an accuracy rate of 65% [7] - On Sept. 3, Campbell Soup reported fourth-quarter EPS above estimates [7]

Company Performance - Target's stock closed at $87.14, reflecting a decrease of 1.32% from the previous day, underperforming compared to the S&P 500's loss of 0.5% [1] - Over the last month, Target's shares have decreased by 9.85%, while the Retail-Wholesale sector gained 0.66% and the S&P 500 gained 2.74% [1] Financial Forecast - Target is expected to report an EPS of $1.8, indicating a 2.7% decline from the same quarter last year, with revenue forecasted at $25.47 billion, a drop of 0.78% year-over-year [2] - For the entire fiscal year, earnings are projected at $7.49 per share and revenue at $105.16 billion, representing declines of 15.46% and 1.32% respectively from the prior year [3] Analyst Estimates - Recent changes to analyst estimates for Target are important as they reflect the evolving business landscape, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Target at 3 (Hold), with a slight decrease of 0.01% in the EPS estimate over the last 30 days [6] Valuation Metrics - Target has a Forward P/E ratio of 11.8, which is a discount compared to the industry average Forward P/E of 22.31 [7] - The company also has a PEG ratio of 2.55, aligning with the average PEG ratio of the Retail - Discount Stores industry [7] Industry Context - The Retail - Discount Stores industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 102, placing it in the top 42% of over 250 industries [8]

Financial Sector Overview - The momentum of the Financials sector has decreased in recent months, although the overall trend remains upward [1] - Bank stocks and other financial institutions have underperformed compared to the tech-led S&P 500 since April [1] - The upcoming third-quarter earnings season is critical for the Financials sector [1]

Core Insights - Target reported a profit of $935 million for Q2 fiscal 2025, translating to net income of $2.05 per share, a 20.2% decline YoY, missing analyst expectations of $2.09 per share [1][4] - Revenue for the quarter was $25.21 billion, beating expectations but down 0.9% from the previous year, indicating ongoing challenges in attracting shoppers [1][4] - The company's market value is $39.33 billion, with trailing P/E at 11.58x and forward P/E at 11.77x, both below sector medians, reflecting investor caution [2] Financial Performance - Target's net income fell 20% YoY, with profit missing analyst expectations due to tariff costs impacting merchandising margins [4] - Analysts expect quarterly earnings of $1.80 per share, down from $1.85 last year, with a full-year estimate of $7.49 per share, a significant drop from $8.86 [10] - The consensus among 36 analysts is a "Hold" rating, with a mean price target of $106.41, suggesting a potential upside of about 22% from the current stock price of $87.17 [11] Strategic Initiatives - Target is preparing for its Circle Week event from Oct. 5 to 11, featuring exclusive product drops and deeper discounts aimed at loyalty members [6][12] - The retailer is introducing 20,000 new items this year, doubling last year's offerings, with over half being exclusive products [8] - Target is expanding next-day delivery to 35 metro areas, enhancing convenience for shoppers, with 85% of in-store merchandise eligible for same-day delivery [9] Market Position - Target maintains its status as a Dividend King with an annual dividend of $4.56, yielding 5.17%, supported by a robust dividend ratio of 58.62% [3] - The company has seen its stock price decline 35% YTD, trading at levels not seen since 2019, indicating significant market challenges [5]

Core Insights - Golden Arrow Resources Corporation is advancing exploration at the Noemi target within the San Pietro IOCG Project in Chile, with a new trenching program aimed at identifying extensions of a significant structural zone hosting gold and copper mineralization [1][3][5]. Exploration Program Details - The Noemi target area spans approximately 2 kilometers by 3 kilometers, located about 7 kilometers south of the Rincones resource, featuring geological units such as fine-grained andesites and tuffs [4]. - Initial chip channel samples from the Noemi target returned notable results, including intervals of 10.0 meters averaging 1.88 g/t Au, 8.0 meters averaging 1.66 g/t Au, and 10.5 meters averaging 1.82 g/t Au [1][5]. - The trenching program will involve up to 12 trenches totaling approximately 720 meters, with an expected output of around 600 samples [5]. Recent Developments - Additional rock chip samples have been collected from structures 500 meters east, 200 meters west, and a possible northern extension 2.6 kilometers to the north, with results anticipated in 4 to 6 weeks [2]. - The exploration team is also evaluating other prospects within the western part of the San Pietro project, which has seen limited prior work [3]. Geological Context - The mineralization at Noemi is associated with tourmaline alteration and is believed to be related to the mineralized system at the Lolita Norte target, located 3 kilometers to the west [3]. - The project is situated in a region known for significant IOCG deposits, enhancing its potential for valuable discoveries [9]. Company Overview - Golden Arrow Resources is focused on the San Pietro project, which targets multiple copper-gold-iron oxide deposits across over 21,000 hectares in the Atacama Region of Chile [8]. - The company has reported an initial Mineral Resource Estimate for the Rincones and Colla deposits, including 2.5 million pounds of contained copper and 770,000 ounces of contained gold in the inferred category [8].