June 27, 2014 - TGTDude
21% Dividend Increase!
I am so pissed off that Target took away my health insurance. I’ve worked here seven years and always liked it well enough, until they pulled this bull crap. I will be leaving before Christmas. Anyways, to my point:
Target just increased its annual dividend payout to shareholders by $0.34/share, a 21% increase. With a 600 million share float, that amounts to better than $200 million/year in additional annual dividend payments.
Follow me here…
When Target stripped me of my insurance, they informed me in an insulting letter that only 10% of eligible employees were using the insurance (not sure how that was a relevant stat). According to Yahoo Finance, Target employees 366.000. Ten% would be 36.600 who were on the medical insurance (actually less, since we’re only talking about people on the part time insurance. but I don’t have that figure).
Now, if you divide the amount of the dividend increase by the number of employees who lost insurance (again, I’m going with an employee count that is certainly much too high) you arrive at a figure of $464 Per Employee Per Month (Minimum!), an amount with would go far to covering the costs for the insurance that Target claimed was too expensive.
Bottom line folks, Target screwed us. Yes, the so-called Affordable Care Act made health insurance a whole lot more expensive, and I don’t doubt that Target felt a pinch, but they clearly have enough money to have let us keep our insurance. Why could not they have said that if you have company insurance you can keep it, but discontinue it for new hires? Then over time, as employees quit, those insurance costs would have dissipated for the company.
Finally, I understand that businesses pay dividends to shareholders, and often increase them annually. That is not my issue. My issue is by HOW MUCH Target increased the dividend in the wake of stripping me of my insurance. It is normal for a thriving company to increase its Divy by 10-15%, for a healthy company to increase it by 7-10% and for a struggling company to keep it unchanged or raise it 3-4% at best.
For Target to raise the dividend by a whopping 21% is an insult to every worker in this company. I am PISSED! I am leaving. Done.