Target Boosts Quarterly Dividend 20%
Target raised the quarterly dividend to $1.08 from 90 cents previously.
Photo:
Joe Raedle/Getty Images
Target Corp.
TGT -1.08%
boosted its quarterly dividend by 20%, just days after the retailer cut its outlook as high inventories weigh on its profit.
Target on Thursday said its board raised the quarterly dividend to $1.08 from 90 cents previously. The annual payout of $4.32 represents a yield of about 2.76% based on Wednesday’s closing price of $156.70, up from 2.3%.
Target is in the midst of clearing out inventory. The retailer on Tuesday warned that its profit would drop because it needs to cancel orders with vendors and offer discounts to clear out unwanted goods.
Chief Executive
Brian Cornell
said that Target was taking the action to ensure that the bloated inventory levels don’t cause problems throughout the year. “We have to be decisive and get out in front of this to make sure this doesn’t linger through the back half of the year,” he told The Wall Street Journal in an interview this week.
Shares initially sank on the news and were down 2.7% for the week through Wednesday.
The profit warning came just ahead of Target’s annual shareholder meeting on Wednesday.
The Minneapolis company said the increased dividend is payable Sept. 10 to shareholders of record Aug. 17.
Overstocked
WSJ articles about retailers’ inventory woes, selected by the editors.
Write to Colin Kellaher at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Target raised the quarterly dividend to $1.08 from 90 cents previously.
Photo:
Joe Raedle/Getty Images
Target Corp.
TGT -1.08%
boosted its quarterly dividend by 20%, just days after the retailer cut its outlook as high inventories weigh on its profit.
Target on Thursday said its board raised the quarterly dividend to $1.08 from 90 cents previously. The annual payout of $4.32 represents a yield of about 2.76% based on Wednesday’s closing price of $156.70, up from 2.3%.
Target is in the midst of clearing out inventory. The retailer on Tuesday warned that its profit would drop because it needs to cancel orders with vendors and offer discounts to clear out unwanted goods.
Chief Executive
Brian Cornell
said that Target was taking the action to ensure that the bloated inventory levels don’t cause problems throughout the year. “We have to be decisive and get out in front of this to make sure this doesn’t linger through the back half of the year,” he told The Wall Street Journal in an interview this week.
Shares initially sank on the news and were down 2.7% for the week through Wednesday.
The profit warning came just ahead of Target’s annual shareholder meeting on Wednesday.
The Minneapolis company said the increased dividend is payable Sept. 10 to shareholders of record Aug. 17.
Overstocked
WSJ articles about retailers’ inventory woes, selected by the editors.
Write to Colin Kellaher at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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