The Best Dividend Growth Stock to Buy with $1,000 Right Now

The Best Dividend Growth Stock to Buy with ,000 Right Now
The Best Dividend Growth Stock to Buy with ,000 Right Now

You don’t have to look too hard to find stocks with great dividends. In fact, some of the best dividend payments come from companies you can use every day.

While many high-growth stocks may be obscure, the best dividend stocks are great precisely because they have a long history of growth that can’t be ignored.

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However, you might be surprised to learn what I think is the ultimate dividend growth stock. This is a company that you may interact with frequently and not realize has such an attractive dividend. The company I’m talking about is Aim (NYSE: TGT)and here’s why it could be perfect for you if you’re looking for high dividend stocks and have $1,000 to spend.

Image source: Objective.

All about the dividend

Target is the Dividend King, meaning it has been paying and increasing its dividends for at least 50 consecutive years. The dividend kings have been through almost every type of economy and catastrophe, including global wars, hyperinflation, and pandemics, and they haven’t skipped a single dividend increase. That’s the reliability you can count on if you expect to receive a check in the mail.

Target recently joined the club, having raised its dividend for the 54th time last June. That means in a few weeks you’ll have 55 years of dividend increases under all types of circumstances.

At the current price, Target’s dividend yields 3.6%, which is very high for a Dividend King. Dividend kings provide value through their reliability and growth, not necessarily their yields. Target’s dividend has also grown faster than many other great dividend stocks, such as Coca-cola, Procter & Gambleand Walmart.

KO Dividend Chart
KO Dividend Data by YCharts

All about the action

Speaking of increasing the dividend in all kinds of conditions, including adverse ones, Target has been in a difficult situation for a few years now. What started with supply problems and overstocking has turned into inflationary pressure, political messes, and a brand that doesn’t resonate.

The company got a new CEO this year, and he outlined a new growth strategy to combat these problems. It focuses on improving merchandise assortment, revitalizing stores and accelerating new technologies.

So far, Target is showing progress in its recovery. It reported a 6.7% year-over-year increase in sales in the fiscal first quarter of 2026 (ending May 2) and a 5.6% increase in comparable sales. Adjusted earnings per share rose to $1.71 from $1.30 and the company raised its guidance.

As Target continues its recovery, you can count on great, reliable, and growing passive income.

Should You Buy Target Stock Right Now?

Before you buy shares in Target, consider this:

He Varied and Dumb Stock Advisor The analyst team has just identified what they believe are the 10 best stocks for investors to buy now… and Target was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $477,813!* Or when NVIDIA made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,320,088!*

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*Stock Advisor returns from May 27, 2026.

Jennifer Saibil has positions at Walmart. The Motley Fool has positions and recommends Target and Walmart. The Motley Fool has a disclosure policy.

The Best Dividend Growth Stock to Buy with $1,000 Right Now was originally published by The Motley Fool

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