Target (TGT) Raises Quarterly Dividend 7.7% to $0.56; Adds $5B to Common Stock Buyback Plan

Target (NYSE: TGT) declared a quarterly dividend of $0.56 per share, or $2.24 annualized. This is a 7.7% increase from the prior dividend of $0.52.

The dividend will be payable on September 10, 2015, to stockholders of record on August 19, 2015, with an ex-dividend date of August 17, 2015.

The annual yield on the dividend is 2.9 percent.

In addition, Target’s board of directors has approved an expansion of its current share repurchase authorization from $5 billion to $10 billion. Under this authorization, through the first quarter of 2015, the company had invested a total of $3.7 billion to retire 56.9 million shares at an average price of $65.06 per share.

“Today’s announcements reinforce Target’s long history of thoughtfully returning cash to shareholders through dividends and share repurchase,” said John Mulligan, Target’s executive vice president and CFO. “Our capital deployment priorities have been consistent for many years and remain the same today. First, we invest in our core business through projects that support our strategic and financial goals. Second, we support the dividend and expect to maintain our long-standing record of annual increases. Finally, we return cash to shareholders by retiring shares within the limits of our current investment-grade credit ratings. Given our outlook for capital expenditures and the strong cash generation of our core business, we expect to have the capacity to increase our annual dividend — and repurchase billions of dollars of Target shares annually — while maintaining our current credit ratings.”

For a dividend history and other dividend-related data on Target (TGT) click here.

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