Recent Buy: May 6th 2014
I added my 13th company today in the Target Corporation. This Dividend Champion with 46 years of dividend raises also boasts a 10 year dividend growth rate of 21%. I purchased 24 shares at $57.95 a share and a PE of 18.7. The yield is 2.97% and this adds $41.28 to my 12-month forward dividends for a new total of $651.82.
With the departure of its CEO, Target’s price has dipped in the past few days. Problems include the data breach, competition in online retail, and a poorly executed expansion into Canada. Has it all come together to dramatically effect earnings? We’ll find out much more later this month.
However, I’m not as worried about the short term. I plan to hold this fundamentally solid company for many years to come. I see these as issues that need immediate attention, but behind them is a shareholder friendly board that isn’t just twiddling its thumbs. They are taking action and seeking new leadership to fix the problems.
I do question how bad things really are, and what their effect on the stock price will be, but on further dips I will add to my position. Ultimately, I think the investor with a longer time horizon could benefit from the current setback.
What are your thoughts on TGT?