Collection of RECENT BUYS (January 2017 Summary)

Since our family began investing in dividend stocks approximately two and a half years ago, I've been keeping a personal log of what other dividend bloggers and dividend investors are buying. The collection essentially highlights the Recent Buys that I discover throughout the dividend blog community. Its nice to see what others are buying, if for nothing more to get some ideas.  

This collection started out as my own personal data sheet but I have since decided to share it with the DGI community.  I am glad I did because, as evident in our recent post (We Just Joined the 400K club), it has been once of the more popular pages on our blog!! We hope it everyone continues to use our Collection of Recent Buys and it remains a great resource for all. It can be a lot of work to maintain but we remain committed and will do our best to keep this list up to date. 

Please feel free to bookmark or share the page: 

 COLLECTION OF RECENT BUYS

AND NOW FOR THE SUMMARY OF
WHAT EVERYONE HAS BEEN BUYING THIS PAST MONTH

During the month of January a total of 49 buys were found throughout the DGI community. Given that the DOW is now above the 20,000 threshold, and there is much uncertainty of what Donald Trump's next move is, it appears that buying activities have slowed a bit.  

Below is a chart and corresponding table that identifies those companies that were purchased three or more times this past month: 

To summarize the past month, out of a total of 49 buys found around the DGI community (with a minimum total of $300), a total of 31 companies were purchased with a total of only 8 companies that were bought more than once. From the buys collected,  DGI investors picked up a stock not purchased by others 63% of the time. 

For the month of January, V.F. Corporation (VFC) lead the charge as the most popular stocks among DGI investors this past month. UL was purchased by 5 different investors throughout the DGI community. Our family also managed to grab a few shares of this popular choice among DGI investors. On January 26, 2017, our family picked up 8 shares of V.F. Corporation (VFC) at $52.00.

The second most popular stock this past month was Unilever (UL) which was purchased by 4 different investors throughout the DGI community.  UL appears to have remained on everybody's radar since November, when it was the most bought stock in the DGI community.

Rounding up the third was a 4-way tie between Gilead Sciences, Inc (GILD), Procter & Gamble (PG), Target Corporation (TGT), and CVS Pharmacy (CVS). All four companies were purchased by 3 difference investors throughout the DGI community. Our family grabbed 7 shares of Gilead Sciences (GILD) at $71.33 on January 19, 2017. 

Although not included in the above summary charts, it is worth mentioning that the following two stocks were bought more than once this past month:   

1. AbbVie Inc (ABBV)
2. Qualcomm Inc (QCOM)

Data used for this SUMMARY is from our 

 COLLECTION OF RECENT BUYS

What have you been buying?  Please feel free to share in the comments or send me a link to your Recent Buy post in case I happened to have missed it.

If you have a chance, make sure you also take a look at my COLLECTION OF STOCK ANALYSES!! As with my collection of recent buys, my goal is to make this collection also become a centralized source for everyone. It could become a place where one can get ideas on what to invest in next, to establish a desired stock purchase price, or simply to see what your favorite blogger is buying.  Whatever your reason, my hope is that this collection proves to be a great reference tool and helps provide you that little extra advantage that you are looking for in order to succeed with your investing.

Also, if you have a chance, make sure you also follow or visit Adam over at I Want to Retire Soon (IWTRS) as he generally provides a weekly summary of recent buys! A link to past summaries is maintained on his blog. Another great resource for ideas if you are not sure where to invest next! 

RECENT BUY : (NYSE: TGT)

WE RECENTLY PURCHASED THE FOLLOWING

Target Corporation (TGT)

Purchased 10 shares of TGT on 5/19/2016 at $67.25
Total Spent: $672.50; added $22.40 in forward dividends.

Our family has been on the sidelines since early February. Although it is nice to stock pile to cash, I must admit it feels so much better to be adding to those forward dividends. :) So on 5/16/2016, we did just that. We picked up 10 shares in Target Corporation (TGT) at our limit price set at $67.25. In all we spend $672.50 which added another $22.40 to our yearly dividends. And the best part, as reported in our April dividend stocks portfolio report, we had just sold 15 shares of Target Corporation (TGT) on 4/27/2016 and 4/5/2016 for $83.33 and $82.31, respectively.  

Target Corporation (TGT) It currently pays more than 3% in dividends, has a low payout ratio in the low 40s, and has been growing their dividends for 48 consecutive years! Below is a ranking and fair value price given by S&P Capital IQ and Morningstar:

• S&P Capital IQ ranks Target 3-stars, with a 12-month price target of $76.00 and a fair market value of $73.80.
• Morningstar ranks Target 3-stars, with a fair market value of $74.00.

Company Description

From Google Finance:

“Target Corporation offers everyday essentials and merchandise to its customers. The Company sells a range of general merchandise and food through its store and digital channels. The Company's general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items. The Company's digital channels include a range of general merchandise, including various items found in its stores, along with a complementary assortment, such as additional sizes and colors sold only online. The Company's brands include Archer Farms, Market Pantry, Threshold, Simply Balanced, Merona, up & up, Boots & Barkley, Room Essentials, Wine Cube, Circo, Smith & Hawken, Xhilaration, Embark, Ava & Viv, Spritz and Sonia Kashuk. The Company's exclusive brands include C9 by Champion, DENIZEN from Levi's, Nate Berkus for Target, Cherokee, Fieldcrest, Oh Joy! for Target, Mossimo, Genuine Kids from OshKosh, Shaun White, Kid Made Modern and Hand Made Modern.”

With our recent purchase of Target Corporation (TGT), the estimated forward dividends for our family's dividend stocks portfolio grew another $24.00, putting our yearly dividends at approximately $3,240/year (excluding our Edwards Jones account) and $3,625/year (including our Edward Jones account).  

Since we already previously owned TGT, our family's dividend stocks portfolios (WF and EJ Accounts) the total stocks held remains the same with total of 53 different dividend paying stocks/ETFs and also 5 companies that either don't pay a dividend our has currently suspended their dividends.

Our family's dividend stocks portfolio may be found

by clicking on the link below:

DIVIDEND STOCKS PORTFOLIO

We also maintain an extensive list of stock analysis

that can be access through the link below:

COLLECTION OF STOCK ANALYSES

We also just started a list of Recent Buys by other bloggers

that can be access through the link below:

COLLECTION OF RECENT BUYS

HERE IS A QUICK FACT SHEET FOR THE STOCK I JUST PURCHASED:

Target Corporation (TGT)

P/E: 13

Payout Ratio: 42%
Dividend Yield: 3.30%
Dividend Growth rate (5yr AVG): 47%
44 consecutive years of dividend increases
Last Ex-dividend date: 5/16/2016

Next Ex-dividend date: approx. 5/16/2016
Have paid a dividend since: 1965 (51 years)
Pays a dividend 4 times a year.
Market Cap: 40.6 Billion
52-week high: $85.81
52-week low: $65.60
Purchased Price: $67.25

What are your thoughts on of recent purchase?

What are you buying?

Recent Buy - Target (NYSE: TGT)

 





I just bought 10 more shares of Target today in an effort to increase my exposure to the consumer discretionary sector. My purchase of Target today increased my total share count to 20 shares. And more importantly, it provided a $17.20 increase to my annual dividends.  And since I still have 70 free trades with my brokerage account, the purchase did not cost me any commission fees.

At today's purchase price of $56.90, my yield-on-cost was 3.0%.  Target has a current P/E is 18.44, with a forward P/E (1yr) of 14.61. Target has a 5-yr trailing growth of 20% and a LT dividend growth estimate of 12%. Target has paid a dividend to its shareholders since 1967 with 42 years of consecutive increases. That is an increase in all but 5 years!!

POSITIVES

• Target is the second largest U.S. discount store retailer.
• Although Target current has 1,793 Target stores in the U.S. and 124 stores in Canada, analysts believe Target still has room to grow. 
• Analysts forecast Target growth at a 10% average pace over the next 5 years.
• Target is expected to continue to increase its penetration into grocery and household consumable goods.  Currently, only 35% of its sales. 
• Current dividend of $1.72 represents a payout ratio of only 43%.

My Opinion:

• I believe Target has strong competitive position and solid long term growth prospects.
• I believe Target has a strong loyal customer base.  Personally, I know there are people out there that prefer Target over Walmart simply because of the store experience even though Walmart prices is generally cheaper.
• I believe the Target REDcard and the 5% reward program is under-appreciated. In the long run, as the program gains acceptance, I think purchases through the REDcard reward program will help lift sales and provide added value to the company.
• I believe the remodeling of the stores (P-fresh) to provide more food and consumables will help drive up sales for Target.  From my own experience, it is very convenient for customers to do all their shopping in one store.
• I believe the search for new CEO could provide fresh perspective for shares long term.

NEGATIVES

• Walmart has a pretty solid hold of the first place position amount discount store retailers.
• Target has posted lackluster results for past 5-quarters in the US.
• Expansion into Canada has been a disappointment.
• Massive data breach prior to Christmas.
• The stepping down of prior CEO, Greg Steinhafel, could be seen as a negative by some as they only have an interim CEO in CFO, John Mulligan. There could be some disruption in the near term.
• Target also just fired the president of its Canadian stores.

 My Opinion:

• I believe most of the bad news is already priced into the stock as the stock has a 52-week high of $73.50 ($16.60 or 22.6% more than my purchase price today).
• At the current price, given the growth potential surrounding the REDcard reward program, improving sales in Canada, and increase grocery and household consumable goods, Target is attractively priced.
• Given Target's solid track record for increasing dividends, I believe the dividend outlook is solid.  At worse, dividends should remain the same.

What do you think of TGT here? Do you think it’s fairly valued? 
 
I’ll update my Dividend Stocks Portfolio in a few days when the executed purchase has been finalized.  

Full Disclosure: Long TGT.

Thanks for reading.