Meet the Dividend King That's Quietly Crushing the S&P 500 in 2026. Here's Why It's a Buy in November.

There have been many surprising winners in 2026. Target (NYSE: TGT) has to be near the top of that list. The discount department store operator is crushing the market this year, clocking in with a 51% year-to-date jump.

After years of meandering -- it's an ugly five-year stock chart, losing more than 40% of its value in that time -- the chain is finally resonating with customers again. A new CEO is executing on his turnaround strategy, and shareholders are winning. Let's dive into why Target is still a buy in the month ahead.

Image source: Getty Images.

Target never lost its crown

There are just 54 Dividend Kings trading on the U.S. exchanges. These are companies that have raised their distributions to shareholders for at least 50 consecutive years. Target's streak of hikes is now up to 55 years, one of just 33 companies at that mark or higher.

One can argue that some of the most valuable companies these days weren't even around 50 years ago. It's a fair case, but it misses the point. A Dividend King is about payout consistency over a long stretch of time. Target has continued to deliver growing distributions through eight different recessions.

Many companies with long track records of annual dividend hikes don't pack very high yields. Steady improvement often delivers stock gains over passive income. However, Target's current yield of 3.1% places it among just 16 Dividend Kings with yields north of 3%. That ugly five-year stock chart is a big reason for the chunky yield, but it also illustrates that this turnaround story is still early in the telling.

Hitting the mark

When Target tapped Michael Fiddelke as its new CEO earlier this year, there wasn't a lot of initial buzz. It was an internal hire for a company that was losing market share. Comps were negative. Revenue had declined in each of the three previous years. All three of those bearish trends have reversed in 2026.

Fiddelke introduced a four-pillar plan to turn the cheap chic chain around in February. It would be premature to give the new strategy props for the turnaround, but it can't just be a matter of lucky timing. Since initiating guidance with a call for a 2% increase in annual set sales, Fiddelke bumped that up to 4% in May and 5% this summer. Earnings guidance has also moved higher, even with the required investments to see Target's brand revival plans bear fruit.

So why is Target still worth buying in November? For starters, it reports its fiscal third-quarter results on the morning of Nov. 18. After raising its guidance in back-to-back quarters, the bullish momentum continues; so should the upticks.

Target stock is also cheaper than you might think after beating the market this year. Target now sees an annual profit per share between $9.90 and $10.90. This prices the investment at a reasonable 14 times the midpoint of this year's earnings guidance. There is plenty of wiggle room to boost its dividend again next summer, given a business model with greater recession resilience than traditional retail concepts. Target isn't just on target these days. It's aiming higher.

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.