Hello everyone the year is just two weeks old and I already did my second investment and it is the first time that I have invested in an already existing position. I bought 26 shares of Target which increased my position to 50 shares. This makes it now my largest position in my portfolio with a value of 3 079.70 EUR.
Yesterday the price of Target declined by more than 5% after it lowered the expected 4th quarter results. Target now expects EPS of 1.45 – 1.55 USD instead of 1.55 – 1.77 USD and full year EPS of 5.00 – 5.10 USD instead of 5.10 – 5.30 USD. Considering a dividend of 2.40 USD the pay out ratio is still reasonable enough to expect future dividend increases.
This increases won’t be around 20 % as it was from 2005 until 2014, but I still expect increases of around 5% per year. Target has as well an impressive dividend history by increasing the dividend 49 years in a row.
After all I bought 26 shares at a price of 66.95 USD, this makes it a yield of 3.58%. It will add 62.40 USD to my annual dividend income, considering a dividend of 2.40 USD.
My new dividend Income
Before taxes my forward full year dividend income is now at 1 520.58 EUR with a yield on costs of 3.97% and after taxes it is at 1 095.81 EUR with a yield on costs of 2.86%. That is an average of 91.32 EUR per month.
My goal until the end of 2017 is to have a dividend income of 1 400 EUR after tax.
Please be aware this might vary considering the changes in the exchange rate USD to EUR.
What do you think about Target? Do you also have it in your Portfolio?