Monday, June 27, 2016

Buy: TGT

Finally, a drop in the market, and I picked up 90 shares of TGT, adding $216 to my dividend income. My total forward income is now $5,745.89. My goal for 2016 is $5900 forward div income, and I want to say this is 'yellow'. I'm only funding this with div income, no fresh capital, so I think I can find another $155 in div income to meet that goal. However, it's not all about that one goal. I have ARLP and TAL on my sell list. Both of these have cut their div, but are still generating quite a nice sum. I'll sell sometime this year, but I'm not sure that I will be able to cover the $550 drop in div with other stocks. I'm willing to take the short term hit though, if it means a more stable growth portfolio in the long run.

As for Target, they don't need much introduction. Dividend aristocrat with beaten up stock price (near 52-week lows), but great track record of payments and increases. Sure, there's competition from Walmart and Amazon, but if anything, it's Target's market to gain.

Target scored a 17 out of 20. They missed because of growing too fast, and I'm worried their div growth outpaced their EPS / free cash flow growth and sooner or later will need to slow down. Having said that, being a dividend aristocrat is a nice plus. 

1 comment:

  1. Great buy TGT is one of those stocks that fit really well into a DGI strategy. Nice job.