Big-box retailer Target Corp raises dividend by 1.9%

Shares of Target Corp (NYSE: TGT) jumped nearly 3.0% this morning after the big-box retailer announced an increase in its quarterly dividend.

Target now pays a dividend yield of 3.20%

On Thursday, the grocery chain raised its dividend to $1.10 a share – a 1.9% increase. Target has now lifted its dividend for fifty-two years straight.

The increased dividend will apply on shareholders of record on August 16^th and will be paid on September 10^th. Target stock now pays a dividend yield of 3.20%. In comparison, peer Walmart pays a lower 1.45% yield at the moment.

The stock market news arrives about a month after Target reported its financial results for the first quarter that handily topped Street estimates.

Its shares are down 25% versus their year-to-date high at writing.

Is Target stock worth buying today?

Earlier this week, Activist Insight said in its report that activist investor Bill Ackman could soon build a position in the retail behemoth in which he had interest in 2009 as well.

Target stock has been under immense pressure in recent weeks following the retailer’s Pride merchandise controversy.

Still, Bernstein analyst Dean Rosenblum reiterated his “outperform” rating on the Minneapolis-headquartered firm after it raised dividend this morning. He sees upside in its shares to $183 that represents about a 35% upside from here.

Target expects a 0.7% annualised growth in its same-store sales this year on up to $8.75 a share of adjusted per-share earnings – both ahead of Street estimates.