Saturday, 13 January 2018

My Total Return on TGT

All my TGT shares have done is pay me a dividend, that is until last week, where the share went from about $66 to $76. Finally!

Those who bought in June or July 2017 at close to $50 have done extremely well for themselves (provided they didn't sell). Unfortunately, I sold 50 shares at $50.65 to raise cash for the purchase of my Tahoe. Fortunately, I sill have 250 shares.

I've been in TGT since 2012 and at one point, my total return was close to -20%. Today, my total return is 26%. With dividends, it's 40%. Those numbers are nice and big. They make me feel good! But how about the CAGR?

Because there were cash deposits (i.e. share purchases) and cash withdrawls (i.e. shares sold, dividends received) spread out over time and at irregular intervals, I used the XIRR formula in Google Sheets to calculate the CAGR. The table below shows my CAGR is just over 9% with dividends and just below 6% excluding dividends.


4 comments:

  1. There was some rumor about Amazon buying Target.

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    1. Yep! If you want to see the origins of that, click the link below.
      https://seekingalpha.com/news/3320618-retail-jolt-amazon-seen-making-run-target
      When this came out, TGT was $65.25. A 15% premium means that the analyst was thinking Amazon would pay $75 per share...Considering TGT is now at $77 per share, I guess Amazon is going to have to pay a heck of a lot more than $75.

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  2. I made the mistake of selling TGT in November to harvest tax losses. While, that will help at tax time, I'm now in a precarious position of not wanting to pay a premium to get back into TGT.

    Congratulations on sticking it out with TGT! I still believe in the company despite the AMZN concerns.

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    1. That sucks! I'm really surprised that shares rallied so fast based on positive holiday sales and new guidance. Is that all it takes to send a stock on a tear? Unreal. At $77, TGT is probably fairly valued, but I also would hesitate to buy at these levels. I would probably go with OMC instead, just because the valuation seems better.

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