Target declares a $1.16 quarterly dividend

Target declared a regular quarterly dividend of $1.16 per share, payable on December 1 to shareholders of record as of November 11. The payment marks the retailer's 237th consecutive quarterly dividend since it went public in 1967. On an annualized basis, the payout totals $4.64 per share, translating to a yield of roughly 3% based on the September 23 closing stock price of $157.08.

The company continues to fund the payout directly from operating cash flow. In the first six months of 2026, Target generated $4.52 billion in operating cash flow, allocated $2.40 billion to capital expenditures, and paid $1.03 billion in dividends. That left approximately $2.12 billion in free cash flow, meaning dividend payments absorbed about half of that amount. In the most recent quarter, operating cash flow stood at about $3.80 billion and capital spending was $1.37 billion, generating roughly $2.43 billion in free cash flow against $518 million in dividend payments.

Target has increased its annual payout for 55 consecutive years, having raised the quarterly rate by 1.8% from $1.14 to $1.16 in June. Although annual dividends rose from $3.16 per share in 2021 to $4.64 annualized for 2026, payout growth has slowed. The company has directed more capital toward operations, with second-quarter capital spending climbing 27% year-over-year to $1.4 billion for new stores and remodels. At the same time, Target cut prices on thousands of frequently purchased items, while digital comparable sales rose 8.7% and same-day delivery expanded more than 25%.