NEW YORK (TheStreet) -- Target (TGT) shares are up 0.87% to $79.59 in early market trading on Wednesday after the retailer confirmed that it is doubling its stock buyback program to $10 billion and raising its quarterly dividend by 7.7%.
The company had placed a press release announcing the increases on its website early Tuesday but removed the announcement shortly afterwards saying that the announcement was premature because its board of directors had not officially approved the measures.
The company raised its quarterly dividend to 56 cents per share from 52 cents per share payable September 10 to shareholders of record on August 19.
The news comes as the company holds its annual shareholders meeting today in San Francisco.
"Given our outlook for capital expenditures and the strong cash generation of our core business, we expect to have the capacity to increase our annual dividend and repurchase billions of dollars of Target shares annually while maintaining our current credit ratings," said CFO John Mulligan.
Target is a core holding of Jim Cramer's Action Alerts PLUS charitable trust. Here is what Cramer had to say about today's news.
"I can't believe how quickly this balance sheet has built up in quality given the huge charge from closing Canada. TGT remains a very big position for AAPLUS because of these pro-shareholder actions."
TheStreet Ratings team rates TARGET CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: