Target disappoints with small dividend hike in 2023

With a dividend hike of only 1.9% to $1.10 quarterly retailer Target (TGT) surely disappointed many dividend growth investors. It's the smallest hike in decades by the Dividend Aristocrat.

Target did however hike its dividend for the 52nd consecutive year, prolonging the impressive dividend growth track record. On the flip side, its the smallest hike in many many years by Target and comes after big 20% (2022) and 32.4% (2021) hikes in the previous two years.

The dividend is payable Sept. 10, 2023 to shareholders of record at the close of business August 16, 2023.  The 3rd quarter dividend will be the company's 224th consecutive dividend paid since October 1967 when the company became publicly held.  

TARGET CORP ANNUAL DIVIDEND HIKES

• 2023: 1.9% (smallest in decades)
• 2022: 20.0%
• 2021: 32.4%
• 2020: 3.0%
• 2019: 3.1%
• 2018: 3.2%
• 2017: 3.3%
• 2016: 7.1%

With the increase announced today, 2023 is on track to be the 52nd consecutive year in which Target has increased its annual dividend. The dividend yield for Target is 3.3% at a stock price of $133.81.

Several other Aristocrats also announced small hikes recently, including Lowe's Companies. 

Target Corp. is a well-known retail company based in the United States. It operates a chain of retail stores offering a wide range of products to consumers. Target is known for its large-format stores that provide a one-stop shopping experience for customers. The company's owned brands include Archer Farms, Market Pantry, Sutton & Dodge, Art Class, Merona, Threshold, Ava & Viv, Pillowfort, Room Essentials, Wine Cube, Cat & Jack, Simply Balanced and Wondershop. Its exclusive brands include C9 by Champion, Hand Made Modern, Mossimo, DENIZEN from Levi's, Nate Berkus for Target, Fieldcrest, Kid Made Modern, Genuine Kids from OshKosh and Liz Lange for Target.