Why Target (TGT) Appeals to Shariah-Conscious Dividend Investors

Target Corporation (NYSE:TGT) is included among the 11 Best Halal Dividend Stocks to Buy Now.

Target Corporation (NYSE:TGT)’s stock has dropped from the highs it reached during the pandemic, following a slowdown and eventual decline in its sales growth. The stock has also tumbled this year, falling by nearly 25% since the start of 2025.

That said, Target Corporation (NYSE:TGT) has consistently been a reliable choice for income-focused investors, boasting a 54-year track record of annual dividend increases, earning it a place among Dividend Kings. In June, the retailer raised its dividend by 1.8% to $1.14 per share, signaling its ongoing commitment to that streak despite current business challenges. With a dividend yield of 4.4%, as of July 18, the stock remains attractive.

Though Target Corporation (NYSE:TGT) has faced some headwinds, it continues to generate solid profits. Even if its earnings come in at the lower end of its full-year forecast, the dividend payout ratio would stay below 70%, indicating that the dividend is on solid ground for the foreseeable future.

While we acknowledge the potential of TGT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.