02-28-2017, 12:12 PM
(01-19-2017, 11:36 AM)EricL Wrote: I posted this another thread, but copying it here to keep it with this discussion.
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.
Eric & everyone,
In my opinion,Target stock would soar if the board dumped the CEO. Their decline this year is tied to the CEO's determination to interject his strong social justice opinion into the business and then not back off when the backlash started in April. Target isn't the only company to suffer this way and I don't understand why boards/shareholders don't raise Cain over it. They're in business to make money for the shareholders, not alienate half of their customers.
I'm tempted to buy a small position, but there are other companies I'm interested in as well as adding to existing positions so I'll probably pass again.