Target (TGT) is a popular holding across many dividend growth investors’ portfolios.
After all, few companies can match Target’s impressive track record.
With over 100 years of operating history, Target has proven to be one of the most durable companies in the world.
The company also holds the title of being a dividend aristocrat, rewarding shareholders with 49 consecutive years of payout raises. You can view analysis on all of the dividend aristocrats here.
Despite Target’s impressive history, the company has fallen on hard times recently. Once fourth quarter results are finalized, Target’s revenue will have declined year-over-year for five consecutive quarters.
Target’s stock has disappointed investors as well, trailing the S&P 500 by more than 20% over the last year.
After dropping by 8% since revising its guidance earlier this week, Target’s shares offer investors a yield above 3.7% and trade for less than 14 times 2016 earnings – a large discount to the broader market.
Let’s take a closer look at the issues impacting Target to determine if the stock might make sense for our Conservative Retirees dividend portfolio, which seeks to preserve capital and deliver a very safe, above average dividend yield.