I initiated a position in TGT @63.80 as posted here :
I took this opportunity to add a dividend aristocrat at what i believe to be depressed levels.. The stock is trading at the low end of its trading range due to selling pressure lately which stems from their latest disappointing earnings report.. These short term blips offer opportunity for the LT investor as I demonstrated with the purchase of (NYSE:COH) and (NASDAQ:BBBY) two other retailers after they too disappointed investors with what turned out to be a temporary slowing in earnings..
TGT has paid dividends for 46 years and in the last 10 years sports a dividend growth rate of 18% .. It presently sports a 2.8% div yield.
Trading in the 63-64 level represents value , while there is always a chance for further weakness , the risk reward seems favorable as I believe the shares will trade back to the mid 70 level, while looking at the possibility of only 4-5% downside from here if the market weakens..
While the S & P traded 10 points during the day on 9/27 TGT as UP on this session.. A sign that maybe the stock has indeed bottomed..
During the same day (9/27) I added to my position to JPM @52.24 . While the market was down , JPM was UP on the day . The latest headlines for JPM have been outright terrible and yet the stock has shown to be resilient as it traded down to its 200 day MA and bounced up from that level this past week..
Those headlines of the potential 11 Billion payout that JPM may have to make to settle Mortgage issues ,while the stock holds it ground is indicative of the strength of the company's business going forward..
I have a target price in the mid 60's in '14 and will collect the 3% dividend along the way.. More increases may be on the way similar to the 27% increase we just saw this past May ...
For those interested in getting on board , the Ex- div date for the next payout is 10/2.
Good Luck !
Additional disclosure: I am long numerous stock positions ( list can be seen here on this blog) I am short Gold via DZZ