Recent Investment

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.

Target

Source: Morningstar.com

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?

9 Comments

  1. The retail sector is definitely taking a pounding in recent weeks. Nice way to pick up some shares on these dips. I do not hold any retail stocks in my portfolio but I have been seeing several of our dividend investing peers buying M, TGT and even KSS recently. Thanks for sharing.

    • Hi Divhut,
      thanks for your comment. Yes the retail sector is at least not part of the post election rally. Btw. why don’t you have any retail stocks?

      • It’s just a sector that I do not like for a long term portfolio. I would rather invest in other spaces that I can see being viable in ten or twenty years down the line.

  2. Nice blog you have here. As someone who is also based in Austria, I’ll be following your posts. Keep up the great work – and the clever investments!

  3. Nice buy on the dip. TGT has seen softness the past few weeks. I’m a shareholder, but I’m not sure how long I’ll carry TGT. I’ll probably sell on the next bug gain. I just see too much pressure from online retailers in the coming years. But for now, it’s a solid dividend and worth owning.

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