Target Stock 'Bucking' Market Trend, Will Only Get Better: Cramer
Target appears to have exceeded another target. The retailer announced Thursday that it will raise its dividend 3% to 68 cents from 66 cents. The increase, which is payable September 10, will mark Target’s 212 consecutive dividend.
Target said the move puts it on track for its 49 consecutive annual dividend increase.
As one of the core “essential” retailers amid the coronavirus pandemic economic shutdown, Target has been closely watched by Wall Street.
While Target saw first quarter comparable sales increase 10.8% and digital sales increase 33%, the retailer has seen the largest sales in food and health essentials, which are typically lower margin items. Higher margin items like clothing and apparel saw significant decreases.
In addition, Target increased spending due to higher supply chain costs, increased sanitization and investments in employee safety and wages.
Jim Cramer has maintained that Target is a buy and the stock should be higher. And the latest dividend increase is only confirming his view. Cramer told TheStreet's Katherine Ross that Target is "bucking" the overall market trend Thursday as the overall market points lower with the Dow down as much as 5%. Cramer said the stock is a winner in and out the coronavirus economic shutdown.
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