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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Reuben Gregg Brewer, The Motley FoolMon, Aug 25, 2025, 11:30 AM 5 min readShares of the struggling retailer offer investors a historically high 4.2% dividend yield.Target has a long and successful history, highlighted by its Dividend King status.The board is making the difficult choices that are necessary to turn performance around.10 stocks we like better than Target ›Target (NYSE: TGT) has been struggling even as some of its main retail peers, notably Walmart, have been performing relatively well. That has investors worried about Target's future, leading to a massive pullback in the stock. If you have a contrarian streak, here are three reasons why now could be the time to buy Target stock like there's no tomorrow.One of the biggest reasons to buy Target right now is its dividend yield, which sits at around 4.2%. That is far above the 1.2% of the S&P 500 index and is actually near the highest levels in Target's history. Using dividend yield as a rough gauge of valuation, Target looks like it has been put on the sale rack.Image source: Getty Images.Looking at some more traditional valuation metrics supports that view. The company's price-to-sales ratio, price-to-earnings ratio, and price-to-book-value ratio are all below their five-year averages. To be fair, there's a reason why Wall Street is so downbeat on Target's stock. Sales and earnings both fell year over year in the second quarter of 2025, continuing a trend of performance weakness. That's a very real concern, but there's a caveat here to consider.Target's dividend has been increased every year for 58 consecutive years. That makes it a Dividend King, which is a highly elite group of companies. You can't build a record like that by accident, it requires a strong business model that gets executed well in both good times and bad times. In fact, Target's dividend streak is longer than Walmart's, which is 52 years long.If history is any guide, Target deserves the benefit of the doubt as it deals with its current headwinds. Over the past 58 years there have been many hard times to muddle through, and Target has succeeded each time. That includes the Great Recession between 2007 and 2009 and the coronavirus pandemic in 2020, which was also accompanied by a brief recession.It is easy to justify cutting and running from a troubled business. But investors who think outside the box, so-called contrarian investors, might actually find Target's stock decline, attractive valuation, and business history a perfect combination for justifying a bullish view. But there's one missing piece.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,456.95 +17.63 (+0.27%)Dow 3045,361.83 +79.36 (+0.18%)Nasdaq21,506.34 +57.04 (+0.27%)Russell 20002,358.53 +19.36 (+0.83%)VIX14.87 +0.08 (+0.54%)Gold3,438.00 +20.50 (+0.60%)PortfolioSign in to access your portfolioSign inTop gainersSATS EchoStar Corporation 51.01 +21.13 (+70.70%)SMTC Semtech Corporation 58.30 +7.30 (+14.31%)HSAI Hesai Group 26.57 +3.19 (+13.64%)LEU Centrus Energy Corp. 208.27 +22.99 (+12.41%)UUUU Energy Fuels Inc. 12.28 +1.35 (+12.35%)Top losersNEGG Newegg Commerce, Inc. 68.64 -16.36 (-19.25%)KDP Keurig Dr Pepper Inc. 29.14 -1.96 (-6.30%)BWLP BW LPG Limited 15.13 -0.86 (-5.36%)FUN Six Flags Entertainment Corporation 24.10 -1.38 (-5.42%)PBF PBF Energy Inc. 24.49 -1.27 (-4.93%)Most activeOPEN Opendoor Technologies Inc. 4.6099 +0.0699 (+1.54%)NIO NIO Inc. 6.70 +0.61 (+9.94%)NVDA NVIDIA Corporation 182.17 +2.34 (+1.30%)LCID Lucid Group, Inc. 2.1200 +0.0400 (+1.92%)WBA Walgreens Boots Alliance, Inc. 11.93 -0.05 (-0.38%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersSATS EchoStar Corporation 51.10 +21.22 (+71.02%)MSFT Microsoft Corporation 498.96 -5.30 (-1.05%)ALLR Allarity Therapeutics, Inc. 1.4700 +0.5287 (+56.17%)NIO NIO Inc. 6.66 +0.57 (+9.36%)HUT Hut 8 Corp. 25.65 +2.20 (+9.38%)Top economic events