Name of opportunity: 👀
Target Corp
Great dividend catch: 🎣
For 52 consecutive years, the US retailer Target Corporation has raised its dividend payouts for stakeholders. For this reason, The Motley Fool has categorised Target among the ‘Dividend Kings’ - companies that have consistently raised their payouts for at least half a century. The dividend payout itself is considered to be ‘Above Average’ by analysts. Target’s dividend yield of 2.93% offers a moderate income opportunity for investors, according to analysts. If you invested $1000, you would be paid $29.30 a year in dividends (based on the last 12 months). The dividend payout was most recently increased in June, by 1.8%.
Target has sometimes struggled with its cash flow in recent years, hit hard by supply chain issues and also by a decline in consumer spending after a boom in the pandemic. However, the business is currently considered by analysts to be in ‘Above Average’ financial health.
How hot is this investment opportunity? 🔥🔥🔥
Analysts predict the price of Target Corp. will increase from $146.82 to $171.08 in the next 12 months. If you invested $1000, you might profit $157.12. Some reasons for this include the company’s good financial health - the company’s average EBITDA (which indicates the company's earnings before certain expenses) over the last 12 months is $8.63 billion, suggesting the company is profitable. Its revenue, cash flow and gross margin also appear healthy.
Back in May, the company announced that it was slashing prices of thousands of products, after reporting disappointing Q1 figures. Analysts are hoping that this and other measures will help Target increase sales. Target has also leaned into e-commerce more and more - online sales increased in Q1 compared to the previous year. CEO Brian Cornell announced at the time that online sales would be an area of focus for future growth.
The analysts at Zacks have given Target a score of ‘A’ on their Zacks Value Style Score, meaning that in their opinion this stock is undervalued compared to its peers.
Consumer goods giant: 🎯
Target Corporation has a chain of department stores across the US and Canada, selling consumer goods across categories including clothing, electronics, household goods, toys, in addition to groceries. As of this year there are 1,956 stores. Target has a number of private-label brands that make products exclusively for the company’s locations and online store, including brands for furniture, food and drink, and toiletries. The company has more than 400,000 employees and is headquartered in Minnesota, US.
Which neme?: 🔍
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