TGT vs ULTY: Dividend Yield, Growth & Safety Comparison
Target Corp (TGT) from Consumer Staples and YieldMax Ultra Option Income Strategy ETF (ULTY) from N/A offer different dividend profiles for income-focused portfolios. ULTY offers a significantly higher 137.83% yield compared to TGT's 4.01%, a gap of 133.82%. For dividend growth, TGT leads with a 5-year CAGR of 9.4% versus ULTY's -88.4%. TGT is a Dividend Aristocrat with 42 years of consecutive increases.
Key Metrics Comparison
| Metric | TGT | ULTY |
|---|
| Dividend Yield | 4.01% | 137.83% |
| Annual Dividend | $4.50 | $45.23 |
| 5-Year CAGR | 9.4% | -88.4% |
| Payout Ratio | 55% | N/A |
| Consecutive Years | 42 | 0 |
| Price | $115.49 | $34.47 |
Yield Comparison
YieldMax Ultra Option Income Strategy ETF (ULTY) currently yields 137.83%, which is high for the broader market. That's 133.82% more than Target Corp (TGT), which yields 4.01%. In dollar terms, ULTY pays $45.23/share annually versus TGT's $4.50/share.
Dividend Growth
Over the past five years, TGT has grown its dividend at a 9.4% CAGR compared to ULTY's -88.4%. 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%. ULTY: Dividend growth has been steady, with a 3-year CAGR of -88.4% and a 5-year CAGR of -88.4% (10-year: -88.4%).
Dividend Safety
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. ULTY's dividend safety is rated "Unknown." Insufficient data to assess dividend safety.
Income Comparison
A $10,000 investment in ULTY generates approximately $13783/year in dividend income, compared to $401/year from TGT — a difference of $13382/year. At $100,000, that gap widens to $133820/year.
Verdict
- Best for income: ULTY
- Best for growth: TGT
- Best for safety: TGT
Frequently Asked Questions
Which has a higher dividend yield, TGT or ULTY?
YieldMax Ultra Option Income Strategy ETF (ULTY) has a higher dividend yield of 137.83% compared to Target Corp (TGT) at 4.01%.
Is TGT or ULTY a better dividend growth stock?
Target Corp has the stronger dividend growth with a 5-year CAGR of 9.4%, compared to YieldMax Ultra Option Income Strategy ETF's -88.4%.
Which is safer for dividend income, TGT or ULTY?
Target Corp's dividend safety is rated "Safe" while YieldMax Ultra Option Income Strategy ETF is rated "Unknown." 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 TGT vs ULTY generate?
A $10,000 investment in TGT generates approximately $401/year in dividends, while the same amount in ULTY generates about $13783/year.
Is TGT or ULTY a Dividend Aristocrat?
Target Corp is a Dividend Aristocrat with 42 consecutive years of increases. YieldMax Ultra Option Income Strategy ETF does not currently qualify for aristocrat status.
TGT vs ULTY: which is better for retirement income?
It depends on your priorities. ULTY for current income, TGT for dividend growth, TGT for safety. Many retirement investors hold both for diversification.
TGT Dividend Analysis | ULTY Dividend Analysis | All Comparisons | Comparison Tool