3 Reasons to Buy Target Stock Like There's No Tomorrow

• Target's extended footprint helps marque it a person successful omnichannel retailing.

• The declining banal terms and yearly dividend increases person led to generous payouts.

• Its existent valuation implies constricted downside.

• 10 stocks we similar amended than Target ›

Target (NYSE: TGT) conscionable released its third-quarter 2025 net report, and it did small to animate assurance successful the company. Net income and profits person continued their declines, adjacent arsenic Walmart and Costco proceed to study dependable income growth.

Moreover, it had precocious alienated customers implicit its governmental stances, and the determination to regenerate longtime CEO Brian Cornell and beforehand existent COO Michael Fiddelke to the CEO presumption was not good received by investors.

However, the existent authorities of Target arguably makes the retail banal an progressively compelling contrarian buy. Amid its troubles, it mightiness beryllium clip for investors to commencement adding shares. Here are 3 reasons why.

Admittedly, touting its marketplace presumption whitethorn look nonsensical erstwhile income are declining. Its estimation arsenic an "upscale discounter" whitethorn neglect to resonate with investors erstwhile its lawsuit basal has go progressively budget-conscious. Also, a determination to instrumentality a governmental stance and aboriginal reverse it had the effect of alienating some right-leaning and left-leaning customers.

Nonetheless, Target remains powerfully positioned crossed America's retail scenery to scope customers. It operates astir 2,000 stores successful each 50 states, meaning that astatine slightest 1 Target store is wrong 10 miles of much than 75% of the U.S. population.

With its extended merchandise selection, it tin connection customers a wide assortment of goods. Of its competitors, lone Walmart tin lucifer that benignant of scale. Still, Walmart tends to people a much price-sensitive lawsuit base, a important opposition from the Target shopper, who tends to gain higher incomes and seeks much upscale items astatine affordable prices. Hence, Target tin inactive differentiate itself successful the retail landscape.

Moreover, acknowledgment to the diminution successful the banal price, income investors person a unsocial accidental successful Target stock.

Target offers shareholders an yearly payout of $4.48 per share, and with the little banal price, that amounts to a dividend output of 5.4%. Considering that the S&P 500 pays an mean dividend output of astir 1.2%, that's an highly generous payout.

Plus, the dividend is connected way to support moving higher. Target has raised its dividend for 54 consecutive years, making it a Dividend King. Abandoning specified streaks often leads to years of conflict for a stock, making it improbable that Target volition halt the yearly payout hikes unless it's necessary.