Here's How Many Shares of Target (TGT) Stock You'd Need for $1,000 In Annual Dividends

Published: Wednesday, September 10, 2025 at 12:23 pm

Target Stock: How to Generate $1,000 in Annual Dividends

Target (TGT) is currently navigating a challenging period, with its stock price experiencing a significant downturn. The company's stock price has decreased by 40% over the past year. Despite these difficulties, the lower share price has resulted in historically high dividend yields for investors.

To illustrate, let's consider how an investor could generate $1,000 in annual dividend payouts from Target stock. Based on the company's recent dividend increase, the quarterly payout is now $1.14 per share, which translates to $4.52 annually.

To achieve $1,000 in annual dividends, an investor would need to own approximately 222 shares of Target stock. This calculation is derived by dividing the desired dividend income ($1,000) by the annual dividend per share ($4.52). At the current share price of $91.50, this investment would require a total outlay of $20,313. This investment would yield $1,003.44 in dividend payouts over the next four quarters.

Target has a strong history of increasing its dividend payments, having done so for the past 54 years. While the rate of increase may vary, the company's commitment to shareholder returns suggests that the dividend payouts are likely to rise over time. This means that the effective yield on the initial investment could increase, provided the investor holds onto the shares.

BNN's Perspective: While Target faces headwinds, its commitment to dividends is a positive sign for investors seeking income. However, the stock's recent performance warrants caution, and investors should carefully consider their risk tolerance and investment goals before making any decisions. The company's turnaround strategy will be key to its long-term success.

Keywords: Target, TGT, stock, dividends, dividend yield, investment, shares, payout, financial, market, retail

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