Excellent article, the chowder rule supports my thesis that Target is an excellent buy at this time. It has its structural issues but the dividend is extremely safe with a payout ratio around 50%. Consumer defensive will be a great place to have your money in for the next recession and these stretched valuations.
That Chowder number of 16.21 for TGT really stands out when you combine it with the 4.91% yield. The market seems to be focussing too much on near term headwinds and missing the longer term value proposition here. Even with the CEO transiton coming up, Target's real estate holdings alone provide a solid floor of protection. I think the 50% payout ratio gives them plenty of room to manuever through this period while maintaning the dividend streak.
I’m looking forward to this Friday!
Excellent article, the chowder rule supports my thesis that Target is an excellent buy at this time. It has its structural issues but the dividend is extremely safe with a payout ratio around 50%. Consumer defensive will be a great place to have your money in for the next recession and these stretched valuations.
That Chowder number of 16.21 for TGT really stands out when you combine it with the 4.91% yield. The market seems to be focussing too much on near term headwinds and missing the longer term value proposition here. Even with the CEO transiton coming up, Target's real estate holdings alone provide a solid floor of protection. I think the 50% payout ratio gives them plenty of room to manuever through this period while maintaning the dividend streak.