The decision was made on an opportunity that I felt was staring blank, right into the eye. The opportunity I felt in my gut, came from an analysis I did on a stock over this past weekend. I simply used our dividend screening tool to assess the situation and thought – this fits in and based on past history and valuations currently, I had to pull the trigger.
Tag Archives: TGT
Target Stock Analysis
Target has obviously been a part of some very intense headlines this year – Data breach on credit cards, as well as CEO stepping down from the company. I have actually had this analysis in draft form and then last Tuesday – provided even more great news for me to hold off on publishing the article. Here is my Target (TGT) stock analysis and my decision to purchase or not to purchase:
Expected June Dividend Increases
As dividend followers, we love companies that raise their dividend on an annual basis. Lanny and I often find ourselves having side bets about how much a company will raise their dividend to see which one of us will get closer. Of course it is all fun and games, but it emphasizes the importance of investing in a company that will continue to grow their dividend as a flat dividend or a dividend increase less than inflation will decrease your future purchasing power. Using the Wikipedia definition of a Dividend Aristocrat (25 years of dividend increases), we projected which aristocrat will declare a dividend increase in June. Remember, we cannot guarantee that the dividend will be increased in this month, but we wanted to use the timing of historical dividend increases to project which aristocrats will declare an increase in the upcoming month.
Bad news, after accumulating the list we realized Aristocrats do not typically raise their dividend in June. We predict only the following companies will announce an increase next month:
The Target increase should be the most interesting of the three in lieu of the recent pullback in the stock price. I am looking forward to see what action they take. Hopefully all three of the companies will continue their historical trend and increase their dividend.
~Bert
See which companies increased their dividend in May