Target Corporation

What happened today to make the price of Target (TGT) shares go up 10%? Good news and great earnings. I always appreciate good news and what that sometimes does to the price of a company’s stock. But, there is always a “but.”

My Target Shares after selling 100 this morning

But Take Profits Willingly

You don’t have to hold onto shares indefinitely. Target is a great consumer discretionary company, and they have all of the elements that I want to see in an investment. Prior to this morning, there were 600 shares of Target in my IRA. Now there are 500. There is a reason. Actually, there are at least five reasons…

Five Reasons

  1. To grab a 10% gain. The yield is a decent 1.99%, but 10% is five years of 1.99%.
  2. The stock went ex-dividend on August 18, 2020. I still get the $68 dividends on the 100 shares I sold. I will continue to get dividends on the 500 remaining shares.
  3. The current euphoria may not last. If the price drops dramatically, I may buy more shares.
  4. Profits are only profits if you sell. There are reasons to lighten up to lock in profits for other investment opportunities.
  5. Target may not grow at the same rate in the future. The current P/E is a rich 26.60. That isn’t bad if growth continues, and it is certainly better than TJX. The key word is always “if.”
Don’t miss dividend growth opportunities. Target has more than 50 years of growth.

Full Disclosure

I still own 500 shares of Target and view it as a long-term holding.

Do the math. Then determine what to do with an investment.
Photo by Karolina Grabowska on