“Be fearful when others are greedy and greedy when others are fearful” – Warren Buffett
Target (TGT) is one of the most consistent, stable dividend growth stocks around. The company has increased its dividend payments every year for 45 consecutive years.
Over the last decade, Target has compounded its dividend payments at 19.0% a year and its earnings-per-share at 5.6% a year. Earnings growth would have been higher had the company not botched its expansion into Canada and suffered a serious (and well publicized) data breach.
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Despite its long history of success and stability, Target stock has declined 12.5% this month.
The reason for the decline? Comparable store sales fell 1.3% in November and December.
While that’s not positive to be sure, business results do fluctuate. The modest decline is not expected to last. In fact, Target is projecting earnings-per-share growth of around 8% in full fiscal 2016.
Other investors have become overly fearful of Target.
It’s time for dividend growth investors to be greedy. Target is currently ranked in the Top 10 using The 8 Rules of Dividend Investing (thanks to its recent price decline which has pushed up yield and dropped Target’s P/E ratio).
While Target won’t be the highest ranked stock in the upcoming February newsletter, it is a historically great time to buy into Target.
In fact, Target is trading around its highest dividend yield ever.
Target will be analyzed in detail in the upcoming Sure Dividend Newsletter.
Just like it makes sense to buy great businesses when they go on sale, it also makes sense to take advantage of the sale on Sure Dividend’s Newsletters to find other great businesses trading at compelling valuations…
This week only (ending 2/5/17, no exceptions) I am offering a deep discount coupon deal on my newsletters for investors looking for high quality, shareholder friendly dividend growth stocks.
Use the coupon code SAVER to reduce the annual plan from $79/year down to $48/year. Your price will never change after joining.
- Click here to join the Sure Dividend Newsletter, for the 10 best high quality dividend growth stocks (yields typically around 2% – 4%) trading at fair or better prices for the long run.
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P.S. – The newsletters always publish on the 1st Sunday of the month. The next editions of the newsletters come out this Sunday.