Target Corporation (TGT) Dividends

TGT Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. Regarding Target Corp, the DDM model, as implemented by StockNews, implies a negative return of 40.89% relative to its current price. Digging deeper, the aspects of Target Corp's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Defensive sector, Target Corp's expected return of -40.89% is higher than only 20.24% of its fellow sector mates.
• Compared to all dividend issuing stocks in our set, Target Corp bears a discount rate, according to our calculations, lower than only 20.24% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for Target Corp than it is for 8.33% of other dividend issuers in the Consumer Defensive sector.
• As other dividend issuers in the Consumer Defensive sector, Target Corp has an equity discount rate lower than only 20.24% of them.

TGT Dividends vs. Peers