Here's How Many Shares of Target You'd Need for $10,000 in Yearly Dividends
Key Points
You would need to make a hefty investment in the stock to generate $10,000 in annual dividend income.
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You may love Target (NYSE: TGT) for its diverse merchandise at relatively low prices (I know I do), but the stock is also a Dividend King. That is, it's among an elite group of stocks that have increased their dividend for at least 50 consecutive years.
And in June, the big-box retailer increased its quarterly dividend by 1.8%, raising it from $1.14 per common share to $1.16. That makes the retailer's dividend yield, which is just the annual dividend divided by the share price, about 2.9%.
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So, for investors looking for income-producing stocks, the question is, how many shares would you need to earn $10,000 in annual dividends?
Image source: Getty Images.
Well, you would need to own about 2,155 shares of Target to earn that much in dividends over the next year. At the current share price of about $159, that's a hefty investment of more than $344,000 in a single stock. For most investors, that would be an overconcentration in one stock.
To be sure, a yield of 2.9% is higher than the S&P 500's yield, which is about 1% right now. But it's still not considered a high-yield stock. Those start around 4% and range higher.
But you probably shouldn't invest in Target solely for its dividend. Instead, you would buy it for the combination of dividends and its potential for capital appreciation.
As of Aug. 21, Target shares have climbed an impressive 67% in 2026, significantly outperforming the broader S&P 500 index, which is up about 13% over the same period.
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Matthew Benjamin 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.
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