Thursday, November 21, 2013

New Purchase - TGT


As I stated in an earlier post this month, I am interested in adding additional shares of Target to my portfolio at $64 or less.  TGT stock took a noticeable tumble today when it missed Wall Street's expectations in an earnings release and also lowered future guidance.  Target is currently opening new stores in Canada, it appears costs associated with that expansion are negatively affecting current earnings.  However I like its plan to expand abroad and Canada seems like a great market to kick off international growth.  At any rate, shares of Target were trading below my buy price so I took action.  These 27 additional shares will pay me $46.44 per year on a 2.68% yield.  Not the greatest starting yield, but I like TGT's future growth & dividend growth prospects.  It's currently sitting on a dividend growth streak of 46 consecutive years(!!!) which helps demonstrate just how successful and high quality this business really is.  In general, I'm leery of retail stocks and do not plan to weight them heavily.  That said, both WMT & TGT tickle my fancy and they both have a place in my portfolio.  I will probably not expand my retail holdings past those two names as the retail sector is littered with failed or failing businesses such as Sears and K-Mart.  No doubt this is a competitive industry.

November has been a fairly strong month for deposits as I received my travel money from a mission last month.  A few weeks ago I decided to put additional capital into OHI in order to piggy back on a commission that was going to be paid anyway.  Today's TGT purchase is also larger than normal for the same reason.  Just trying to keep my transaction costs as low as possible.  I'll have a few hundred bucks left over to increase my cash position for greener pastures as well.

The DOW cracked 16,000 today and is sitting at all times highs...

Symbol: TGT
Core Position: No
Speculative Position: No
Expectations: Steady income; 7% annual dividend growth
Automatic Sell: Frozen dividend; dividend cut
Consider Selling:  Business fundamentally changes, management becomes untrustworthy, fundamentals deteriorate, wildly over valued stock price, or position fails to meet expectations.

12 comments:

  1. Just discovered your blog.
    Nice purchase! TGT is one of these stock that remains fairly valued currently.
    I considered adding on my position this am when I saw the change in price. But somehow did not.


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    1. Glad you happened to stop by my little corner of the internet. If you are interested in dividends/passive income, you can follow along if you want to and witness the thoughts of a middle class investor with dreams of financial independence. I do not claim to be a great writer or even to be doing anything special. I just post what I'm buying and maybe even do a real article once in a while. Some people find value in that, some don't (it's all good). Anyways I'm glad you stopped by and wish you all the best!

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  2. Haha TGT was a popular buy today for folks! A pretty reasonable value for TGT with a low but decent yield considering the dividend growth. Should be a good holding for years to come!

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    1. Agreed. Finally got a purchase in the books for November!

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  3. Nice purchase -- although I also bought TGT today, so perhaps I'm a bit biased! :)

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    1. Oh really? I'll stop by your site in just a moment!

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  4. Pickings are slim at the moment and I believe TGT is a good buy. I'm looking to average down so i was quite happy to see the share price come down.

    Nice buy. Keep it up!

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    1. Haha yeah they are... The first company on my November watch list hitting my buy price is TGT. ding ding ding. I guess my money goes in that direction.

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  5. I think TGT is on a lot of people's short lists now with the recent drop. I've been averaging in on shares for a while and may go slightly overweight if prices stay down for a few weeks. There's just not a lot of value in this market so you have to take advantage of good opportunities when you can.

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  6. All this BS about missing expectations is so funny and laughable. I am actually happy that Wall Street is obsessed with this short term EPS thing. It can provide great opportunity to us. And yes we shall pick the opportunity up!

    I like TGT as well and planning on adding shares to my portfolio too.

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    1. I'll have to drop by to see if you decided to pull the trigger. Sorry I haven't really been interested in investing lately. It's a combination of seeing the market go up every day and the ski slopes calling my name. I was able to get 5 days of skiing in last month and went today too. Great way to kick off December! I'm taking a week of leave soon and will hit double digit skiing days this month barring injuries...

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