Target doubles share buyback authorization
MINNEAPOLIS — Target Corp. is doubling the amount of its share buyback authorization from $5 billion to $10 billion. Under this authorization, through first quarter 2015, the company had invested a total of $3.7 billion to retire 56.9 million shares at an average price of $65.06 per share.
Target said this plan represents a continued focus on returning cash to shareholders. The retailer follows a plan of investing in the core business through projects that support strategic and financial goals, supporting the dividend and returning cash to shareholders.
“Today’s announcements reinforce Target’s long history of thoughtfully returning cash to shareholders through dividends and share repurchase,” said John Mulligan, Target’s executive VP and CFO.
Target also declared a quarterly dividend of 56 cents per common share, a 7.7% increase from the prior quarterly dividend of 52 cents. The dividend is payable Sept. 10, 2015, to shareholders of record at the close of business Aug. 19, 2015.
Target posted an announcement of the share buyback and quarterly dividend on its website by mistake on the afternoon of June 9, ahead of its shareholders meeting, but quickly removed the posting and then officially released it later that night after the meeting concluded.