TGT

Two Retail Kings, Four Times Apart on Yield

Target and Walmart both belong to the Dividend Kings, and both sell to the same American shopper. Their dividends could hardly look more different. Walmart yields 0.88%. Target yields 3.48%, nearly four times as much. The gap has little to do with the dividends themselves. It is about which stock the market loves and which it has left behind.

The Discount the Yield Is Flagging

Target's 3.48% yield sits 14% above its own five-year average of 3.05%, the pattern of a stock that has fallen out of favor rather than run up. Where Walmart got rerated as a growth story, Target has been marked down on softer sales and margin worries. Our screen reads the result as Undervalued. On the current $4.54 payout, the price would need to rise from $130 toward $149 just to bring the yield back to its own five-year norm.

For an income investor, that is the draw. A 53-year King paying a yield above its own history is not something a beloved stock usually offers.

Coverage Behind the 53-Year Streak

The dividend has support. Target pays out 60% of earnings, comfortably under the 93% King average, and earns a perfect 100 Safety Score on the strength of a 53-year raise streak.

A 60% payout is higher than Walmart's 34%, but it still leaves a real buffer, and the perfect safety score says the 3.48% yield is not a distress signal.

What Could Change the Picture

The 60% payout is the number to watch. It leaves a real cushion today, but it sits higher than a fortress-balance-sheet name, so it depends on earnings holding up. If Target's sales and margins keep slipping, that ratio climbs, and a payout drifting toward its limit is how a comfortable dividend slowly becomes a strained one. The 53-year streak and perfect safety score say the company will defend the dividend hard, and history is on its side. But the 3.48% yield exists because the market is genuinely unsure about the business, not because it has missed a bargain. The swing factor is the turnaround itself. If margins stabilize, the yield looks like an opportunity. If they keep eroding, that same yield is the market pricing in trouble ahead.

The Trade-Off

So Target is the mirror of its larger rival. Walmart pays a tiny yield on a stock the market has embraced. Target pays a yield above its own norm on a stock the market has doubted. The 53-year streak and 60% payout say the dividend is sound. The risk sits in the business itself, the sales and margin pressure that pushed the valuation down in the first place. An investor here is paid 3.48% to wait out that uncertainty, which reads as an opportunity or a warning depending on how Target's turnaround unfolds.

Current price, yield history, and the ex-dividend schedule update daily on the Target (TGT) data page. The dividend record and latest figures are in the company's filings on SEC EDGAR. The scoring behind that Safety Score — half from the raise streak, half from payout coverage — is laid out on our methodology page.

Disclaimer: This is informational only and not financial advice. Figures reflect the site snapshot dated 2026-07-06 and move with the market. Investing carries risk of loss, including loss of principal.