June 14, 2012- Target Corp. on Wednesday announced that its board of directors had approved a quarterly dividend increase of 6 cents to 36 cents or 20%. The discount chain, which is based in Minneapolis, will payout the dividend September 10 to all shareholder of record from August 15. Since the company went public back in 1967, it has paid a dividend for every quarter.
The announcement came just ahead of his annual meeting of shareholders, which was held later Wednesday at a store that will soon open in the downtown area of Chicago. The store, along with ones in Seattle, San Francisco and Los Angeles is a new breed of smaller stores the company has designed for urban settings that are set to make their debuts during this summer.
Target, like many retailers, has been challenged with trying to lure in cautious shoppers in the U.S. amid mainly mixed news economically. The job market remains shaky and the housing market is trying to find its way once again. One positive is that gases prices have dropped and have freed up some more disposable income for the consumer.
Target has offered a program where they give a 5% discount to their shoppers when they opt to pay with debit and credit cards that are Target-branded.
The retailer has 1,763 stories in the U.S. and last month reported that profits in the first quarter were up 1.2% to end at $697 million. Excluding costs that were associated with expanding into Canada in 2013, the per share profit would have increased to $1.11 from $1.04. Revenues were up nearly 6% to over $16.85 billion.