Here’s How Much a $1,000 Investment in Target Stock 10 Years Ago Would Be Worth Today
Retail investors have been able to buy stock in Target (TGT) for nearly 60 years. The company went public in 1967 — it was the Dayton Corporation then, and Target was just one of five divisions. A lot has changed since then, and now there are almost 2,000 locations across the United States. Along the way, the stock price has grown exponentially. One share purchased for $34 in the IPO would now be 96 shares worth over $15,000 — not too shabby.
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Most of today’s investors didn’t have the opportunity to participate in Target’s IPO. Still, those who bought Target stock over the years have enjoyed good returns and a steadily growing dividend. In fact, Target is a Dividend Aristocrat, a title given to stocks that have consistently not just paid dividends but increased them every year for at least 25 years.
What Would $1,000 Be Worth Today?
So, just how much would you have today if you had invested $1,000 in Berkshire Hathaway stock 10 years ago? In May of 2014, your $1,000 initial investment would have purchased 16.13 shares of TGT. Assuming you reinvested all of the dividends paid out over the last 10 years, you would have 21.3 shares worth $3,367.39 as of the market close on May 2nd – a 236.74% return on investment.
That sounds pretty good, but investing in single stocks can be risky. What if you had just passively invested in a widely diversified index over the same time frame? The ten-year return for the S&P 500, the most common index used by passive investors, was about 180% over the same time frame. That means buying Target would have been a smart move – it beat the market even though it’s currently down quite a bit from its highs in 2021.
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