Wal-Mart (WMT) is not used to being the one bullied. Its new competition is not coming from the retail side, but instead it is coming from the financial side. Specifically, Wal-Mart, who has led the way among major retailers in dividend yield, is starting to get some real competition from Target (TGT).
Target Corp. operates about 1,700 Target and 250 SuperTarget general merchandise stores across the U.S. June 13th the company increased its quarterly dividend 20% to $0.36 per share. The dividend is payable September 10, 2012 to shareholders of record at the close of business August 15, 2012. The yield based on the new payout is 2.5%. WMT's current yield is 2.4%.
TGT has notched double-digit dividend growth every year since 2005. In addition, better-than-expected results led the company to raise its full-year earnings guidance last month by $0.05 cents ($4.60 to $4.80 per share.) Although TGT is trading below my fair value price of $70.56, I am not ready to buy due to a higher level of debt than I am comfortable with, but I am certainty watching it much closer than I have in the past.
Full Disclosure: Long WMT. See a list of all my dividend growth holdings here.
- Love People, Use Dividend Stocks
- The 2012 Dividend Achievers
- Why Dividends Matter
- 2011 Was A Great Year For Dividend Stocks
- Utilities Stock Funds Were 2011's Bright Star
Tags: [WMT] [TGT]
Popular Posts - Last 7 days
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
Many Americans are worried that they might not have enough money for retirement. Women who outlive their husbands are at special risk, with ...
We have all heard it... Stodgy, for old people, yawn, boring! These have all been used to describe investing in dividend growth stocks. Neve...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Each Sunday I highlight any notable articles that I came across over the past week, along with any Carnivals I participated in. For those re...
Linked here is a detailed quantitative analysis of AFLAC Incorporated (AFL). Below are some highlights from the above linked analysis: Co...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
We all know what surprising the street will do to a stock's price. The street focuses on quarterly revenue, EPS, EBIT, EBITDA and margi...
When to buy a stock and at what price are very important decisions. However, serious investors will tell you the most important decision is ...
Linked here is a detailed quantitative analysis of Archer Daniels Midland Company (ADM). Below are some highlights from the above linked an...