Target's board has approved the repurchase of $5 billion of its shares.
The retailer said that it will start purchasing shares under the new buyback once it completes its current $10 billion repurchase program, which is expected before fiscal 2016's end.
Target Corp.'s board also declared a quarterly dividend of 60 cents per share. The dividend will be paid on Dec. 10 to shareholders of record on Nov. 16.
Shares of the Minneapolis-based company rose $1.05, or 1.5 percent, to $69.67 in premarket trading Wednesday about an hour ahead of the market opening.