After Target lowers 4Q profit and sales outlook, the share price fell significantly. The Company now expects full-year 2016 Adjusted EPS of $ 5.00 to $ 5.10, compared with prior guidance of $ 5.10 to $ 5.30.
My overall cost basis of this position increases from $ 57.45 to $ 58.75 per share. I totally hold now 115 shares of TGT and my yield on cost is 4.08%. I bought my first TGT's shares in the summer of 2014, so now it was a time to grab some more, because I think the reaction of the market was quite big.
Details of my purchase:
With current
quarterly dividend ($ 0.60), my last purchase 15 shares of TGT increases
€ 25.12
($ 26.82) of expected annual net dividend income. At today's exchange rate, this purchase will increase my portfolio projected annual
net dividend income approximately to € 10,040.00.
After this acquisition, TGT's weight of my portfolio is about 2.0%
and its share of future annual dividend income is approximately 1.92%. In the near future, I don't intend to increase the share
of TGT in my portfolio, if the share price remains at this level.
Click here
to see my portfolio.
Full Disclosure: Long TGT
Thanks for stopping by!
Thanks for stopping by!
Solid buy, I did the same yesterday. And I saw a lot of fellow bloggers also make purchases. Makes you wonder why the price dropped the way it did.... :)
ReplyDeleteAdd me to that list. TGT has been really down, but people tend to ignore the long history of success. 3.5% yield for an aristocrat with solid earnings and big increases is a bargain! Hope its a good buy for all of us.
ReplyDeleteA drop in stock price is always intriguing, but aren't you any worried about how fast the retail industry is changing? Can Target handle the pressure coming from Amazon, Ebay etc.? It also seems that WMT is doing better job with sales than TGT. The yield and payout ratio of Target both look nice atm, but they need to add something new to their business to prevent EPS from dropping. What are your positive arguments for TGT? The history does not guarantee good outcome in the future..
ReplyDeleteHI! I agree with you. As you mentioned, the yield and payout ratio of Target both look nice atm, and I believe that management will be able to turn the direction of in the future. The company’s digital sales grew 40% last quarter, but they aren't (yet) helping company. It’s no new news that e-commerce is fundamentally changing how consumers shop. The real question is what role will big box stores have in 5-10 years from now! Time will show.
DeleteCheers,
DH
Sounds like a good buy. I've seen a few other bloggers pick some up, so good find :)
ReplyDeleteSolid Buy, picked up also 17 shares @ $66. All noise :)
ReplyDeleteHawk -
ReplyDeleteNice purchase, jealous for all of those that were able to pick up at $65 range... dammit!! Congrats!
-Lanny
Great buy DH. Actually I think I will hit the Target also with this dip. IMO Target can do well against WMT and AMZN.
ReplyDeleteOK
Bought TGT at $57 and sold at $81 so I'm very tempted of getting 'back in' :D But then again WMT has weight of 5% in my portfolio so maybe I'll keep waiting for a while...
ReplyDeleteI recently just added some target to my dividend portfolio also. With their 49 years of dividend increases, I think this will make a nice addition to my dividends. Congrats on getting some shares.
ReplyDelete