Dividend Stocks to Consider Amid Market Volatility in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Target's Performance: Target (TGT), a Dividend King, has raised its dividend for 50 consecutive years, currently paying $4.56 with a 4% yield, significantly higher than the S&P 500's 1.1%, indicating a strong commitment to dividend growth; despite recent revenue challenges, the appointment of a new CEO may signal a turning point.
- Valuation Appeal: Target's stock trades at 14 times forward earnings, down from over 17 times a year ago, suggesting that investors might find this an attractive entry point for potential recovery while benefiting from passive income.
- Coca-Cola's Stability: Coca-Cola (KO) is also a Dividend King, offering a $2.04 dividend with a 2.5% yield, supported by robust free cash flow that ensures long-term dividend payments, appealing to income-focused investors.
- Brand Advantage: Coca-Cola's strong brand power and competitive edge continue to drive earnings growth, with a forward P/E ratio of about 24 times considered reasonable in the current market, allowing investors to earn passive income simply by holding the stock.
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Analyst Views on TGT
Wall Street analysts forecast TGT stock price to fall
26 Analyst Rating
8 Buy
14 Hold
4 Sell
Hold
Current: 115.760
Low
80.00
Averages
98.83
High
126.00
Current: 115.760
Low
80.00
Averages
98.83
High
126.00
About TGT
Target Corporation is a general merchandise retailer selling products to its guests through its stores and digital channels. The Company offers customers, referred to as guests, everyday essentials and fashionable, differentiated merchandise at discounted prices. The majority of its stores offer a wide assortment of general merchandise and food. Its merchandise categories include apparel and accessories, beauty and household essentials, food and beverage, hardlines, and home furnishings and decor. Most of its stores are larger than 170,000 square feet, offer a variety of general merchandise and a full line of food items comparable to traditional supermarkets. Its digital channels include a wide merchandise and food assortment, including many items found in its stores, along with a complementary assortment sold by the Company and third parties. Its brands include A New Day, Ava & Viv, Cloud Island, Favorite Day, and others. It serves guests at nearly 2,000 stores and at Target.com.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Target's Performance: Target (TGT), a Dividend King, has raised its dividend for 50 consecutive years, currently paying $4.56 with a 4% yield, significantly higher than the S&P 500's 1.1%, indicating a strong commitment to dividend growth; despite recent revenue challenges, the appointment of a new CEO may signal a turning point.
- Valuation Appeal: Target's stock trades at 14 times forward earnings, down from over 17 times a year ago, suggesting that investors might find this an attractive entry point for potential recovery while benefiting from passive income.
- Coca-Cola's Stability: Coca-Cola (KO) is also a Dividend King, offering a $2.04 dividend with a 2.5% yield, supported by robust free cash flow that ensures long-term dividend payments, appealing to income-focused investors.
- Brand Advantage: Coca-Cola's strong brand power and competitive edge continue to drive earnings growth, with a forward P/E ratio of about 24 times considered reasonable in the current market, allowing investors to earn passive income simply by holding the stock.
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- User Growth and Profitability Shift: Spotify's premium subscribers grew by 10% year-over-year, with free cash flow reaching $3 billion for the entire year, demonstrating a shift from rapid growth to intelligent monetization strategies, improving overall financial health.
- Retail Sales Data Analysis: Retail sales increased by 2.4% year-over-year in 2025, falling short of the 2.7% analyst estimate, highlighting a disparity in consumer spending power, with the top 20% of earners accounting for 60% of personal outlays, while lower-income households face greater economic pressure.
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See More
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- Target's Performance: Target (TGT), a Dividend King, has raised its dividend for 50 consecutive years, currently paying $4.56 with a 4% yield, significantly higher than the S&P 500's 1.1%, indicating a strong commitment to dividend growth; despite recent revenue challenges, the appointment of a new CEO may signal a turning point.
- Valuation Appeal: Target's stock trades at 14 times forward earnings, down from over 17 times a year ago, suggesting that investors might find this an attractive entry point for potential recovery while benefiting from passive income.
- Coca-Cola's Stability: Coca-Cola (KO) is also a Dividend King, offering a $2.04 dividend with a 2.5% yield, supported by robust free cash flow that ensures long-term dividend payments, appealing to income-focused investors.
- Brand Advantage: Coca-Cola's strong brand power and competitive edge continue to drive earnings growth, with a forward P/E ratio of about 24 times considered reasonable in the current market, allowing investors to earn passive income simply by holding the stock.
See More
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- Market Closure: The New York Stock Exchange and Nasdaq are closed today in observance of Presidents' Day, with U.S. bond markets also fully shut down, indicating the holiday's direct impact on financial operations, with trading resuming on February 17.
- Banking Services: Most commercial banks, including JPMorgan Chase, Bank of America, and Capital One, are closed today following the Federal Reserve's holiday schedule, although online banking and ATM services remain operational, with transactions likely delayed until the next business day.
- Postal Service Suspension: The U.S. Postal Service has suspended regular mail delivery and closed all retail post office locations today, while private carriers continue to operate, highlighting the operational differences in public services during holidays.
- Retail Promotions: Many department stores are leveraging Presidents' Day for significant sales, particularly in furniture and appliances, aiming to attract consumers and boost sales, reflecting retailers' strategic approaches during holiday periods.
See More
Lowe's Cuts 600 Jobs to Optimize Resource Allocation
- Layoff Announcement: Lowe's plans to cut approximately 600 corporate and support roles, representing less than 1% of its total workforce, to better support store employees and enhance customer service experience.
- Industry Context: This layoff aligns with trends among other major retailers like Target and Home Depot, which have also announced job cuts of 500 and 800 positions respectively, indicating a collective effort in the retail sector to optimize resource allocation and improve customer satisfaction.
- Earnings Expectations: Lowe's is expected to report $20.34 billion in Q4 2024 revenues, reflecting a 10% increase from $18.55 billion in the same period last year, with earnings per share projected at $1.94, slightly above last year's $1.93.
- Market Sentiment: On Stocktwits, retail sentiment around Lowe's shares shifted from 'bullish' to 'neutral', indicating cautious investor sentiment regarding the company's future performance, despite a 13% increase in stock price over the past year.
See More
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- Potential Refunds: The U.S. Supreme Court is set to rule on February 20 regarding Trump's tariff regime, with a ruling in favor potentially triggering refunds exceeding $130 billion, significantly reshaping American trade policy.
- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
See More
Market Update: S&P 500 Declines and Upcoming CPI Data
- CPI Expectations: The consumer price index, set to be released at 8:30 a.m. ET on Friday, is expected to show a month-over-month increase of 0.3% and a year-over-year rise of 2.5%, which could significantly influence market sentiment and lead investors to reassess their risk appetite.
- Moderna Stock Fluctuations: Moderna's shares have surged 50% over the past three months, closing at $40.11 on Thursday, although this remains significantly lower than the pandemic peak of $497, indicating ongoing volatility in biotech stocks that investors are closely monitoring.
- Wendy's Stock Decline: Wendy's shares fell 7.7% on Thursday, down 55% from their 52-week high, highlighting the persistent pressures facing the fast-food industry, which may impact its future market performance.
- Retail Sector Dynamics: The Amplify Online Retail ETF dropped nearly 4% on Thursday, now down 19.5% from its September high, reflecting weakness in the retail market, especially after experiencing five consecutive weeks of declines, which could negatively affect overall consumer confidence.
See More
