Target's Dividend Has Survived 8 Recessions. Here's What $10,000 Earns in Dividend Income Yearly.

A lot has happened since Target (NYSE: TGT) started paying quarterly dividends near the end of 1967. The country has experienced eight recessions, lasting as little as two months to as long as 18 months. The checks keep coming, and Target has boosted its payout rate for 55 consecutive years. Can it keep the quarterly distributions coming? How much can you collect in dividend income annually with a $10,000 investment? It's time to take a closer look at what a stake in the mass market retailer can do for you -- and your pocketbook. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue " Image source: Getty Images. It checks out Time- and recession-tested, Target stock pays out a generous dividend of $1.16 a share every three months. This translates into an annual payout of $4.64 for a current yield of 2.97%. A $10,000 investment should generate $297 a year in passive income over the next 12 months, but the chances are good that it will be marginally higher. When Target boosted its quarterly dividend rate this summer -- from $1.14 to $1.16 per share -- it marked 55 years of hikes. It will probably do so again next summer. This may not be much of an increase. It's been just $0.02 per share over the last four years, but the hike was much larger in 2021 and again in 2022, when its business was growing at a healthier pace. Put another way, you will get $1.16 per share over the next three quarters. It should be at least $1.18 per share for next summer's distribution. That means $299 in dividend income over the next 12 months, and potentially more. Target is crushing the market this year. Store-level comps are moving higher after three years of negative same-store sales. New CEO Michael Fiddelke has hit the ground running -- in the right direction -- with an ambitious turnaround plan. It will cost money to see his initiatives through, but Target is good for the money. The chain raised its full-year guidance by $0.75 a share this summer. It now expects to earn between $8.25 and $9.25 a share in 2026, excluding the recent one-time gain from tariff refunds. It's going to earn roughly twice as much as it's paying out in dividends this year. With a full year under his leadership belt, I wouldn't be surprised if Fiddelke's next hike in June of next year is substantially higher. Should you buy stock in Target right now? Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,396,103!* Now, it's worth noting Stock Advisor's total average return is 933% -- a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks " *Stock Advisor returns as of September 30, 2026. Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

Target's Dividend Has Survived 8 Recessions. Here's What $10,000 Earns in Dividend Income Yearly.

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