Target: A High-Quality, Stable Dividend Multiplier With Solid Growth

Dec. 20, 2021 8:45 AM ETTarget Corporation (TGT) Stock, , , 18 Comments

Summary

  • Current gross margin pressures are temporary and expected to improve, while Target is making essential investments to ensure adequate inventory level to meet customers' needs.
  • Operational metrics and leading indicators of Target appear solid from its 3Q21 print, positioning itself to outperform peers in 4Q21 and 2022.
  • Consistent dividend growth of 5%, on average, is attractive for investors looking for high quality and stable dividend growers.
People shopping at one of the Target stores

Sundry Photography/iStock Editorial via Getty Images

Investment thesis

With the recent headwinds that Target's (NYSE:TGT) share price has been facing, I believe that the challenges that Target is facing today are merely temporary and will reposition it for future growth. Even during a difficult year, Target still has

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Simple Investing is a former hedge fund and long-only portfolio manager with a track record for outperformance. He managed more than $1 billion in AUM, and is a CFA charter holder who holds degrees in Finance and Accounting. He runs the Investing Group Outperforming the Market.

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