Target Raises Its Dividend by 7.1%

By Tess Stynes 

Target Corp. said its board raised the retailer's quarterly dividend by 7.1%, continuing a trend of 4-cent dividend boosts in recent years.

The Minneapolis company's quarterly payout to shareholders rose to 60 cents a share from 56 cents a share, to yield 3.5%. The new dividend is payable to shareholders as of Aug. 17.

The 4-cent raise matches Target's annual increase for each of the past two years. On a percentage basis, the boost announced Wednesday is Target's smallest since it raised its dividend by a just a penny, or 6.3%, in 2009. From 2010 to 2014, Target shareholders saw dividend increases of at least 19% each year.

With the increase, the company expects 2016 to be the 45th straight year it has boosted its annual payout to shareholders.

Target and many other retailers have gotten off to a weak start this year. Last month, Target said customers pulled back on spending in the quarter ended April 30 and warned that sales at existing stores may decline in the current quarter. Target has been investing to build up its digital business as consumers have been increasing purchases made online.

Shares of Target rose 1.1% to $68.99 in light premarket trading. As of Tuesday's close, the stock has fallen 6% so far this year and 14% in the past 12 months.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

June 08, 2016 09:36 ET (13:36 GMT)

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