Dividend Growth Forum

(01-13-2017, 09:40 AM)billm Wrote: [ -> ]what do you guys think of MGA

MGA looks to be a nice value play right now, but they are not known for consistant dividends.

Looking to increase my Healthcare sector holdings, I added to ABBV and CAH today.

added TGT

(01-19-2017, 10:40 AM)billm Wrote: [ -> ]added TGT

Would love to hear your thoughts, bill -- we've been bashing TGT over here.  

What's not to like about TGT? All these drops in prices have been well past what the stock deserves for its steady output. It will come back and then I'll sell

For all of the claims of disaster for TGT, analysts are still expecting profits to be 11% higher than 2016, and are expecting another 5% of growth in 2018.

The company has been paying growing dividends for the last 48 years, the payout ratio is reasonable, and I think there is a decent chance of at least 5% dividend growth going forward.

A 3.6% yield isn't a bad place to start. I don't think it is a screaming buy here, but I can see why people are getting interested. Retail is a tough business, but Target has shown through the years that it can navigate through the changes. While I haven't put any new funds into the stock, I plan to continue holding and reinvesting my dividends.

TGT not the company it once once. They spent all that money online and its not paying off. Stores are dead and retail not getting out of the dull drums any time soon. Dead money! TGT has continued to disappoint for 2 years now with SS sales. Not to mention mall traffic is way down and not coming back any time soon. It may look cheap but in my mind its heading lower. I would not be in retail other then CVS, WBA, DG, and the auto retailers like AZO and AAP. TGT has a nice yield but that's not nearly enough to hold the stock price up. But hey this is just ones man's opinion and from a shopaholic lol

I also doubled my TGT position yesterday, but I did hesitate a while before I did it. It was a major drop and the price was suddenly 7-8% lower than my starting position's price. As to the pros - the P/S ratio is very-very low, P/E is low too, free cash flow in general is quite OK, payout ratio is doing fine too, yield is now above 3.5% which is historically very rare. As far as I remember they are continuing their share buyback program which is always positive in many ways.
Reasons why I hesitated before I pushed the buy button were the usual retail problems - declining sales (or actually it's quite flat), WMT and Amazon being superior on internet sales (however, I hope TGT will improve, they seem to have invested a lot), dividend growth is slowing down. Debt seems to be quite high compared to equity - debt is declining, but so is equity!
However, I still think that there is a lot of potential in this company, plenty of room for the dividend, and we'll see in a few years if they get through with their changes successfully.

I added to my position in VZ. I did look at TGT, but I am already over weight there.

Added CSCO & GILD

Added BMY, UNH, and XOM

Added more VZ in the pre-market down almost $2. Missed on the est but was above revs.