Wednesday, 21 August 2013

New Purchase - Target

I originally purchased 50 shares of TGT back in December 2012. Today I added another 50 shares as my analysis, posted August 17, 2013, shows the price is attractive relative to the average dividend yield.

First purchase: 50 @ $60.65 (+ $9.95 commission); initial dividend yield 2.37% (now yielding 2.84% with the 2013 dividend increase)

Today's purchase: 50 @ $66.00 (+ $9.95 commission); initial dividend yield 2.60%

My average cost per share, including commission, is $63.52 $63.42.

50 shares of TGT will add $86.00 to my forward 12-month dividends, which now sits at $5,431.82.

4 comments:

  1. A solid purchase. I've also been watching TGT for a while (as well as WMT). Their expansion into Canada has been a bit bumpy, but I think management will eventually work out the issues.

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    1. Thanks DGM. One complaint amoung Canadian consumers is merchandise prices are higher than in the US. This has always been the case but the media is singling out Target for some reason. I too trust that mgt will work out the issues and TGT will prosper in Canada. The one close to my house opens this fall.

      I like WMT too and might buy if it fell to $65.

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  2. I have TGT on my watch list thanks to your previous analysis. Also I like the expected growth at 15%, 40 years of consecutive dividend increases, 20% dividend growth. My calculated fair value is at $72 a share, so I think you made a great purchase.

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    1. Hi Martin,

      The expected high dividend growth is exactly why I did not hesitate to buy more at the current price. I'm even thinking of adding more should the share price fall to $60-$62. Thanks for stopping by.

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