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...
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.