TARGET TO REPURCHASE ADDITIONAL $5 BILLION IN STOCK
Minneapolis-based retail giant Target Corporation has authorized a new $5 billion share repurchase program, as well declaring its quarterly dividend of 60 cents per common share to be paid on December 10.
The new repurchasing program will take place upon completion of the current $10 billion repurchase program, which is expected before the end of fiscal 2016.
In early Wednesday morning trading, Target stock was up slightly, hovering around 69 cents per share.
“Today’s announcements reinforce Target’s longstanding commitment to thoughtfully returning cash to shareholders while continuing to prioritize investing in our business,” said Cathy Smith, Target’s executive vice president and CFO. “Our capital deployment priorities have been consistent for many years and remain the same today. We, first, invest fully in our business, on projects that meet our strategic and financial criteria. Second, we support the dividend, and are focused on extending our record of annual dividend increases, which have occurred every year since 1971. Finally, we return cash through share repurchase, within the limits of our Single-A long-term credit ratings. Given our current pace of share repurchase, this new authorization will allow for seamless execution into 2017.”
