April 19, 2017

Can Target Keep Growing Its 4.5 Percent Dividend Yield?

The numbers that signal Target’s ability to keep dividends on a growth path

Target (NYSE:TGT)’s share price has been on a steady, sharp downward spiral since the middle of 2015, and the company has lost nearly one-third of its valuation over the last 12 months. With a P/E ratio of just over ten, Target is trading at an extremely attractive price point, especially for a dividend investor because the yield is nearly 4.5%. But how sustainable is Target’s dividend capability, moving forward?

One of the main reasons Target’s share price collapsed was that comparable store sales remained extremely weak last year. Considering the state of the competition in the retail market, coupled with the steady rise of Amazon’s sales in the United States, Target found it extremely difficult to make more customers walk into its stores. Comparable sales decreased 0.5% in 2016, with traffic decreasing by 0.8%.

With Walmart and Amazon going to head to head, things are indeed very difficult for smaller players. Target, being a bigger player with 1,802 stores, still has a chance, but it will entirely depend how they can differentiate their offering from a crowded and fiercely competitive market.

April 18, 2017

3 Reasons Why Cisco Is a Better Dividend Growth Stock Than Intel

See why Cisco is a better buy at current prices for long-term dividend growth investors

The technology sector is a surprisingly good source of dividend stocks.

This wasn’t always the case. During the heyday of the tech sector, hardly any tech stocks paid dividends at all.

But after the tech bubble burst, investors began pushing for technology companies—many of which have high cash flow and huge amounts of cash on their balance sheets—to pay dividends.

Two of the highest-yielding stocks in the Dow Jones Industrial Average are Cisco Systems (NASDAQ:CSCO) and Intel Corporation (NASDAQ:INTC), both of which hail from the tech sector.

Neither Cisco nor Intel is a Dividend Achiever, which is a group of 265 stocks with 10+ years of consecutive dividend increases.

That said, Cisco and Intel are both highly profitable companies, with leadership positions in their respective industries.

However, Cisco is in a stronger position right now. This article will discuss three reasons why Cisco is likely to be the better dividend growth stock moving forward.

April 17, 2017

Top 4 Dividend Stocks To Hold Now

In my latest article, I’ve highlighted 4 popular dividend stocks to sell. As I wrote at the end of this article, I don’t appreciate when people criticize without bringing something on the table. For this reason, I’m offering you 4 interesting stock picks for 2017 that could easily replace the other bad seeds.

Let’s look, what is The Dividend Guy’s opinion about HON, LOW, DIS and BLK.

April 16, 2017

Why You Shouldn’t Count Qualcomm, Inc. (QCOM) Stock Out Just Yet

Qualcomm stock has a few catalysts heading its way

Qualcomm, Inc. (NASDAQ:QCOM) has multiple catalysts ahead. The company already announced many of the positive developments yet the stock price hardly moved. The FTC’s antitrust case against the company is just beginning but improving fundamentals outweigh those risks.

An announcement from BlackBerry Ltd (NASDAQ:BBRY) and Qualcomm sent QCOM stock lower.

In an arbitration decision, Qualcomm will pay nearly $815 million to BlackBerry. The royalty over-payments will not hurt the relationship between the two companies, as both are vying to enter markets beyond smartphones. Therefore, QCOM stock investors should expect future collaborations and deals between the two companies despite the arbitration decision.