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Recent Buys

Recent Buy – Target (TGT)

Target

   

    The New Year is upon us and with it, I am happy to announce my first purchase of the year. Originally I was going to wait and build up capital for a new company for my portfolio, but I couldn’t resist the opportunity. I purchased 9 shares of Target (TGT) at $67.40. This will add to my existing position in the company for a total of 27 shares. Below are some more company stats.

 

TGT Stats

Annual Dividend: $2.40

Yield: 3.56%

Years Paying/ Increasing: 49 years

Dividend increase from prior year: 6.67%

Payout Ratio: 46.1%

P/E Ratio: 12.37

EPS: $5.59

 

    While this dividend aristocrat has been struggling as of late, and didn’t hit their Q4 sales numbers. I foresee it continuing to be a quality stock to hold for the long term. With an increasing dividend per year for the past 49 years and a growing younger demographic shopping crowd, we should see this stock turn up soon.   

 

    As shown above, TGT has a dividend yield of 3.56% or $2.40 annually. This will add another $21.60 to my yearly dividend income. What do you think of TGT? Do you have any other companies that are on your watch list? Have you purchased any other stocks so far this year?

 

*EDIT 1/20/2017 – I remembered today that I had some cash reserves from my last recent sell. So I took this opportunity to pick up a few more shares. I bought another 17 shares at $64.85, increasing my dividend per year by another $40.80.

 

11 Comments

  1. What a great time to buy TGT! With the huge drop that happened today, you’d have to be blind not to see the opportunity. Great buy, great buy, great buy! I also own TGT and I wish I had some capital right now to buy more but the budget for the month isn’t quite finalized yet.

    1. Thanks for the comment! I agree, the opportunity was perfect. Just wish I had more available capital to put into it. But every little bit now helps over time.

  2. The retail sector is definitely taking a pounding in recent weeks. Nice way to pick up some shares on these dips. I do not hold any retail stocks in my portfolio but I have been seeing several of our dividend investing peers buying M, TGT and even KSS recently.

    1. Yeah it’s getting harder and harder to compete with Amazon. I have noticed a lot of our peers buying these as well. I was going to try to put more capital into a sector that I was low in, but this sector seems to have the best value right now.

    1. Nice! I already owned some shares prior and it was doing pretty well for me. The price drop made it an easy choice to buy more. With that nice dividend, it should be a solid company to hold long term.

  3. I was thinking that I wouldn’t want to pick up more share unless the stock is below $50. But the yield is historically high for TGT, making me want to buy more.

    Nice pick!

    1. Thank you. After I purchased this, the price continued to drop even further making it even more appealing. I would love to buy more at this level but TGT makes up too big of a position in my portfolio so I will pass this opportunity up for diversification reasons. Looking forward to seeing what you decide to do.

  4. Nice purchase. I just bought some TGT in March (which I’ll be blogging about soon). Might be a good time to add more. They’ve come down a lot since you bought them and have more then enough free cash flow to easily cover their dividend as they get their busy changes figured out. I also sold a put on TGT expiring at the end of May with a strike of 50. Another way to bring in some income.

    1. Yeah the current price and yield of TGT right now is hard to pass up. I would love to pick up some more at this level but for diversity sake I will hold off. They make up too much of my portfolio right now. Nice seeing you get some extra income with your options trading. And I look forward to your next purchase post.

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