Target is a solid investment so I Bought More
I believe that Target (TGT) is an attractive investment. Although I own shares of both TGT and Walmart (WMT), I have been adding to my TGT holdings. Both have similarities in dividend yield and years of growth. Both have rational payout ratios. Both have decent websites and I have used their websites to order products. But Target, in my opinion, has more long-term growth potential.
This morning I added another 25 shares of TGT at $103.35 per share using a buy limit order. On Tuesday of this week I bought 25 shares at $106.85. This brings our total shares to 600.81.
Based on my cost basis of $67.74 per share (several different lots at different prices), we have a “profit” of over 50%, excluding dividends. Based on the current quarterly payment, we will receive about $396 in dividends on June 10. Here is the Seeking Alpha dividend scorecard for TGT. Notice the EPS more than cover the annualized dividend. That is the wise way for Target to reward investors and keep cash for the business.