On Sept. 10, (NYSE: TGT) shareholders as of the close of business Aug. 16 will receive a $1.10-per-share quarterly dividend. Target has paid and raised its dividend for 52 consecutive years, making it a member of the celebrated list of Dividend Kings.

The raise gives Target a forward dividend yield of 3.4%, which is meaningful because it is close to the 10-year risk-free rate of 4.3%. Investors in Target stock get a sizable passive income stream while also being invested in the growth of one of America's largest brick-and-mortar retailers. However, investing in Target stock is also a risk: It can go down in value, which is exactly what has happened in recent years. Target is currently hovering around a three-year low.

Let's take a look at Target's business and valuation to see if the stock is worth owning or if the risks outweigh the potential reward.

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Source Fool.com