Dividend Kings are stocks which have been increasing their dividend payments for 50+ years. And that means if you buy and hold these stocks, your dividend income is likely to rise over time. These are among the most stable dividend stocks you can own in your portfolio as investors have come to expect routine rate hikes from these types of investments.
Big-box retailer Target (NYSE:TGT) falls into that category, with its dividend being a key reason investors hold on to the stock for the long term. And recently, it extended its dividend growth streak by yet another year.
On June 12, the Minneapolis-based company announced it was raising its quarterly dividend from $1.10 to $1.12. It’s a modest 1.8% increase in the dividend but it also means the company has now raised its dividend for a 53rd consecutive year. With the new dividend, investors are collecting $4.48 dividends per year for every share that they own. Currently, Target’s stock trades at around $140, which means its yield is at around 3.2%, which is more than double the S&P 500 average of 1.4%.
Target hasn’t been a top-performing stock this year and its value has been sliding in recent months. But over the past five years, it has generated returns of more than 80% for investors when including its dividend.
At 16 times its trailing earnings, it’s a relatively cheap stock for investors to own and it can be an excellent source of recurring income. If you’re looking for a good dividend stock to add to your portfolio today, Target is a great option to consider.
