Target Corporation

TGT
Consumer DefensiveDividend King
$155.85
2.93%Fair Value

Target Corporation (TGT) is a Consumer Defensive company that currently yields 2.93% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $90.18 and the overvaluation threshold at $271.79. Target Corporation holds a quality score of 75/100 (Good), reflecting 55 consecutive years of dividend growth with a 47% payout ratio. The 5-year dividend CAGR stands at 11.0%.

TGT Dividend Yield History — Weiss Valuation

Underval. $90.18Overval. $271.79

Distance to undervalued

Waiting for a better entry

Needs about 42.1% downside to reach the Weiss buy zone

Undervaluation starts near $90.18, where the annual dividend would imply roughly 5.06% yield. That is 2.13% above today's yield.

Buy-zone price

$90.18

Target yield

5.06%

Research checklist

What to clear before buying the yield

Updated Oct 1, 2026

Dividend durability

55Y

Long dividend history supports a deeper look.

Earnings payout

47%

Earnings coverage leaves room for noise.

Cash payout

61%

Free cash flow coverage supports the payment.

Dividend growth

11.0%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-09-30 → 2026-10-01

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Target Corporation is trading at a fair valuation relative to its dividend history.

Current yield 2.9% vs historical max 4.7% (62% of maximum).

14 consecutive years without a dividend cut.

Conservative payout ratio of 47%.

What matters now

Read the signal before the headline yield

Valuation is neutral here: quality has to do more of the work than entry price.

The 75/100 quality score calls for selective follow-up, not autopilot.

Start by checking whether payout coverage and business durability still support the dividend.

TGT Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$325

Year 10 Income

$1,300

Yield on Cost

14.08%

Total Income

$6,950

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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TGT Dividend Quality Score

Quality Score

75/ 100

Good

Payout Ratio20/25
Dividend Streak20/25
Growth (CAGR 5Y)20/20
Yield vs History5/15
FCF Coverage10/15

Key Metrics

Current Price$155.85
Annual Dividend$4.56
Current Yield2.93%
Yield — Max (10Y)4.69%
Yield — Min (10Y)1.94%
Undervalued Below$90.18
Overvalued Above$271.79
Payout Ratio47.30%
CAGR Dividend 5Y11.0%
CAGR Dividend 10Y7.7%
Years No Cut14y

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55
consecutive years of dividend growth