He also spent cash to remodel stores and open urban locations that delivered a contrast with the giant suburban centers of Walmart (NYSE:WMT), with which it’s often compared. What’s clear from recent results reported by Target and smaller retailers like Nordstrom (NYSE:JWN) is that inflation is contributing to expanding margins rather than compressing them as some investors feared it would. If you’re concerned that the dividend no longer beats the 10-year U.S. Treasury bond, keep in mind that the average annual return for TGT stock over the past five years is more than 30%.