Target Corp TGT-N on Thursday raised its quarterly dividend by 20 per cent to $1.08 per share despite the big-box retailer earlier this week warning of weaker margins.
Shares of the company were up 1 per cent in premarket trading, after having lost nearly a third of their value so far this year.
The company on Tuesday cut its quarterly margin forecast issued less than a month ago, saying it would offer more discounts and cancel orders with suppliers as it struggles to clear excess inventory.
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Analysts, however, have said they expect Target to shed the excess inventory by August and be poised to return to strong profits during the key back-to-school and holiday sales seasons.
Target, which has raised its quarterly dividend every year since it went public in 1967, last year increased it by 32 per cent.
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