Target Corp. has delivered a higher-than-expected dividend raise.
The discounter will raise its quarterly dividend by 32.4%, to $0.90 a share from its prior quarterly dividend of $0.68. The new dividend will be payable on Sept. 10 to shareholders of record at the close of business on Aug. 18. The increase will mark the 50th consecutive year in which Target has increased its annual dividend.
In May, Target reported a record-breaking first quarter as its net income jumped to $2.097 billion. Excluding items, the retailer earned an all-time high of $3.69 per share, blowing past the $2.21 per share analysts expected. Sales rose 23% to $23.9 billion.
In a statement, Target CFO Michael Fiddelke said the increase reflects the company’s “ongoing commitment to disciplined capital deployment, with priorities that have remained consistent for decades.”
“Given strong operating performance and cash generation, our business is well-positioned to support this robust increase in the dividend, even as we ramp up capital investments in our business and continue to invest in our team,” he added.