Target Raises Quarterly Dividend to $1.16 a Share

Target Corporation increased its quarterly dividend to $1.16 per share from $1.14, a 1.75% rise. The shares traded ex-dividend on Aug. 12, 2026.

The increase lifts Target’s annualized dividend to $4.64 per share. Based on a share price of $163.47, the forward annual yield is 2.73%.

The move extends the consumer-defensive company’s dividend-growth streak to 42 consecutive years. Target has a dividend safety score of 93 out of 100, corresponding to an A grade. Its market capitalization is $74,263,027,712.

Target did not identify a specific operating development as the reason for the increase in its dividend announcement. The decision is consistent with the capital-allocation framework described in its annual report: invest first in profitable growth and ongoing operations, maintain a competitive quarterly dividend that management seeks to grow annually, and then use excess cash for share repurchases. Target’s annual report also highlights planned investment in stores, supply-chain capabilities and technology.

The dividend increase comes as Target works to revive growth through changes to merchandise, pricing and the shopping experience. In results reported after the ex-dividend date, the retailer posted a second consecutive quarter of comparable-sales growth, with gains in stores and digital channels. Management said a merchandising overhaul helped attract more customers, though clothing and home-goods performance remained comparatively soft, according to the Associated Press.

What it means for income investors

The higher quarterly rate provides a modest increase in cash income and preserves Target’s 42-year record of annual dividend growth. At the stated share price, investors receive a 2.73% forward yield.

The A safety grade and 93 safety score indicate a comparatively strong dividend profile under the supplied methodology, but they do not guarantee future payments. Target’s ability to sustain further increases will continue to depend on cash generation, operating performance and the competing capital needs of its retail-investment program.