1 Overlooked Dividend King With a 55-Year Winning Streak Worth Buying Now
2026-09-27 08:05
•John Ballard •The Motley Fool
•••••• • Axe Cap view
Why Dividend Kings Like Target Deserve a Second Look
Target’s 55-year dividend growth streak and sales rebound highlight a reliable, if foreign, income play worth watching.
Target’s long streak of increasing dividends is impressive, especially hitting 55 years in a row, but its relevance to South African investors isn’t direct. The US-based retailer’s 3.8% rise in comparable sales hints at a genuine turnaround after years of softness. For local investors, the key takeaway is the impact on the rand. A stronger US retail sector can pull USD/ZAR tighter, pushing the rand weaker and making local exports competitive but imports costlier. South African consumer counters like Shoprite or Woolworths might feel some pressure as imported goods get pricier in rand terms, even though domestic demand remains the bigger driver. Given Target’s 2.9% yield and modest payout ratio, it’s a reminder that disciplined dividend growth stories abroad can offer portfolio balance but won’t shield rand earners from currency swings. Consider waiting on direct domestic retail buys until the rand stabilizes and consumer price inflation eases. this is just our opinion and not financial advice
Hold off on buying South African retailers now; instead, if seeking income, look at USD/ZAR hedged options or balanced funds that smooth currency risk. Watch the rand closely for entry points in domestic retail stocks.
- USD/ZAR
- Shoprite
- US inflation surprises worsen USD strength, hurting the rand
- South African consumer spending weakens more than expected
6/10
Target has raised its dividend for 55 consecutive years, qualifying as a Dividend King. The retailer's stock is up 61% year-to-date, driven by improving sales momentum with comparable sales rising 3.8% in the recent quarter. With a 2.9% yield, 47% payout ratio, and management expecting 5% full-year sales growth, the stock remains attractive for dividend investors despite its recent gains.
Our take is based on reporting first published by The Motley Fool.