In an attempt to boost shareholder value, Target Corporation’s (NYSE:TGT) board of directors authorized a new repurchase program worth up to $5 billion. The company will initiate repurchasing of shares under the new program, upon completing the existing $5 billion buyback plan, which is likely to take place in fiscal 2020. At its last earnings call, Target notified that it still had approximately $1 billion remaining under its current authorization.
In addition, Target declared a quarterly dividend of 66 cents per share. The dividend is payable on Dec 10, 2019 to shareholders of record as on Nov 20, 2019.
We appreciate Target’s efforts to consistently enhance long-term shareholder value. The company’s healthy cash flow generation capability and efficient capital allocation provides it with ample liquidity to return excess cash to its shareholders. During the second quarter of fiscal 2019, Target repurchased shares worth $341 million and paid out dividends of $328 million.
Notably, the company hiked its quarterly dividend by 3.1% in June 2019. People looking for regular income from stocks are most likely to choose companies that have a track record of consistent and incremental dividend payouts.
Things You Ought to Know
Stock Displays Solid Momentum in Six Months
Target’s growth strategies and sound fundamentals reinforce its position in the fast-changing retail landscape. Notably, shares of this Zacks Rank #2 (Buy) company have advanced around 36% in the past six months against the industry’s rise of 22.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has also comfortably outperformed the Retail-Wholesale sector and the S&P 500 Index that advanced 5.4% and 3.7%, respectively, in the said time frame. Further, the stock is hovering close to its 52-week high of $110.94.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.