1 Reason I'm Never Selling Target Stock

Core Viewpoint - Target is facing challenges with declining market share and net sales, but it remains a strong dividend payer with a history of increasing payouts [1][4][5]. Financial Performance - Target's net sales have declined for three consecutive years, with comparable sales at physical stores down 4.2% for the first nine months of the fiscal year [1]. - The company is projected to earn between $7 to $8 per share this year, with a quarterly dividend of $1.13, leading to an annualized payout of $4.56 and a sustainable payout ratio of 61% [6]. Dividend Information - Target is part of an exclusive group of 56 U.S. companies that have increased dividends for at least 50 consecutive years, known as Dividend Kings, and has extended its streak to 55 years [4]. - The recent decline in stock price has pushed Target's dividend yield up to 4.7%, making it attractive for income-focused investors [5][7]. Market Position - Despite a 25% drop in stock value over the past year, analysts expect Target to reverse its three-year decline in net sales by 2026, with the stock trading at just 13 times forward earnings [7][8]. - The company is seen as undervalued, presenting a potential opportunity for capital appreciation alongside its dividend [8].