Is Target Stock's High Yield Worth It in 2025?

With volatility returning to the markets this year, safer dividend stocks with high yields are looking more attractive. Target (NYSE: TGT) stands out as a potential investment option, largely because of its 57-year record of paying (and annually increasing) dividends. It currently sports an attractive 4.83% forward yield based on its current quarterly payment of $1.12. This is the highest yield Target stock has ever offered in its trading history.But even with its stellar dividend yield, the stock price has fallen 65% from its 2021 highs over concerns about inconsistent sales performance. Let's take a closer look at the reasons why the stock might be worth buying, and what challenges it faces.Target stock trades at a cheap valuation of just 10 times forward earnings estimates. The combination of a high dividend yield and low earnings multiple looks very attractive and could set up handsome gains over the next few years.Continue reading

Apr 24, 2025 - 10:33

With volatility returning to the markets this year, safer dividend stocks with high yields are looking more attractive. Target (NYSE: TGT) stands out as a potential investment option, largely because of its 57-year record of paying (and annually increasing) dividends. It currently sports an attractive 4.83% forward yield based on its current quarterly payment of $1.12. This is the highest yield Target stock has ever offered in its trading history.

But even with its stellar dividend yield, the stock price has fallen 65% from its 2021 highs over concerns about inconsistent sales performance. Let's take a closer look at the reasons why the stock might be worth buying, and what challenges it faces.

Target stock trades at a cheap valuation of just 10 times forward earnings estimates. The combination of a high dividend yield and low earnings multiple looks very attractive and could set up handsome gains over the next few years.