DOV vs TGT: Dividend Yield, Growth & Safety Comparison
DOVER Corp (DOV) from Industrials and Target Corp (TGT) from Consumer Staples offer different dividend profiles for income-focused portfolios. TGT offers a significantly higher 4.01% yield compared to DOV's 0.90%, a gap of 3.11%. For dividend growth, TGT leads with a 5-year CAGR of 9.4% versus DOV's 1.0%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | DOV | TGT |
|---|
| Dividend Yield | 0.90% | 4.01% |
| Annual Dividend | $2.08 | $4.50 |
| 5-Year CAGR | 1.0% | 9.4% |
| Payout Ratio | 26% | 55% |
| Consecutive Years | 41 | 42 |
| Price | $231.16 | $115.49 |
Yield Comparison
Target Corp (TGT) currently yields 4.01%, which is attractive for the broader market. That's 3.11% more than DOVER Corp (DOV), which yields 0.90%. In dollar terms, TGT pays $4.50/share annually versus DOV's $2.08/share.
Dividend Growth
Over the past five years, TGT has grown its dividend at a 9.4% CAGR compared to DOV's 1.0%. DOV: Dividend growth has been steady, with a 3-year CAGR of 1.0% and a 5-year CAGR of 1.0% (10-year: 4.5%). TGT: Dividend growth is slowing — the 3-year CAGR of 1.8% trails the 5-year rate of 9.4% and the 10-year rate of 11.1%.
Dividend Safety
DOV's dividend safety is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. TGT's dividend safety is rated "Safe." The payout ratio of 55% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.8x. DOV's payout ratio of 26% is more conservative than TGT's 55%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in TGT generates approximately $401/year in dividend income, compared to $90/year from DOV — a difference of $311/year. At $100,000, that gap widens to $3110/year.
Verdict
- Best for income: TGT
- Best for growth: TGT
- Best for safety: DOV
Frequently Asked Questions
Which has a higher dividend yield, DOV or TGT?
Target Corp (TGT) has a higher dividend yield of 4.01% compared to DOVER Corp (DOV) at 0.90%.
Is DOV or TGT a better dividend growth stock?
Target Corp has the stronger dividend growth with a 5-year CAGR of 9.4%, compared to DOVER Corp's 1.0%.
Which is safer for dividend income, DOV or TGT?
DOVER Corp's dividend safety is rated "Safe" while Target Corp is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. The payout ratio of 55% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.8x.
How much income does $10,000 in DOV vs TGT generate?
A $10,000 investment in DOV generates approximately $90/year in dividends, while the same amount in TGT generates about $401/year.
Is DOV or TGT a Dividend Aristocrat?
DOVER Corp is a Dividend Aristocrat (41 years) and Target Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, DOV or TGT?
DOVER Corp has a lower payout ratio of 26% compared to Target Corp's 55%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DOV vs TGT: which is better for retirement income?
It depends on your priorities. TGT for current income, TGT for dividend growth, DOV for safety. Many retirement investors hold both for diversification.
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