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...
Linked here is a detailed quantitative analysis of Realty Income Corp. (O). Below are some highlights from the above linked analysis: Com...
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...
The Pocket Change Portfolio (PCP) was first introduced on September 13, 2008 as a real money dividend income portfolio funded by the "...
A person’s character is determined by how they behave when no one else is looking and during difficult times . In much the same way, we can ...
There are certainly many ways to categorize the different styles of investing in dividend stocks, including yield, risk, growth, etc. An inv...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
Each Sunday I highlight the Carnivals I participated in over the past week, along with any notable articles that I came across. For those re...
Linked here is a detailed quantitative analysis of Waste Management, Inc. (WM). Below are some highlights from the above linked analysis: ...
One of the most asked questions I get is, 'When should I start investing?' The implication is that now is not a good time. Either th...