The lockdown measures instituted across North America have left many retailers reeling. However, big box stores and other consumer staples have kept their doors open as essential services. Today I want to focus on one super retailer stock with a long history of dividend growth.
Target (NYSE:TGT) is a general merchandise retailer based in the United States. It shares have climbed 16% over the past month as of close on April 27. However, the stock is still down 13% so far in 2020. The company released its fourth-quarter and full-year 2019 results on March 3.
Investors had reasons for optimism as Target outpaced earnings expectations, but revenue still slipped in the face of weak sales for toys, home goods, and electronics in the holiday season.
Target revealed that same-day services, which includes online order pickup, accounted for more than 80% of its comparable digital sales growth in Q4. Investors can expect this to receive a boost due to the COVID-19 outbreak.
Some analysts are expecting Target to strengthen its business in the post-pandemic shopping world. Target currently offers a quarterly dividend of $0.66 per share. This represents a 2.4% yield. The company has delivered dividend-growth for 51 consecutive years.Moreover, Target stock still possesses a favourable price-to-earnings ratio of 17. It has a remarkable track record and its earnings are well-positioned for good growth in the years to come. Target is a stock that is well worth holding onto in this environment.
