Target Corporation (NYSE:TGT) increased the quarterly dividend by 16.7% to 14 cents per common share. In addition, the company increased its current $5 billion share repurchase authorization by $3 billion, for a total authorization of $8 billion.
Program-to-date, the company has repurchased approximately $4 billion of its common stock, resulting in about $4 billion of remaining repurchase capacity under the larger $8 billion authorization. The company expects to complete the aggregate program by year-end 2010 or sooner.
Target Corporation currently operates 1,500 Target stores in 47 states.
PAYOUT YIELD ANALYSIS
With 851 million shares outstanding, the $4 billion of the remaining authorization will return $4.70 per share. However, Target has committed to not completing the program until end of year 2010. With 3.5 years to go, the annual yield of the program is projected to be $1.34 per share. Combined with an annual dividend of $0.56, the Total Payout per year would be $1.90. At $64 per share, the Total Payout Yield would be 3.0%.
- Payout Yield Staff