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Originally Posted by LS1-IROC
More great info Greg...thanks for doing what your doing. I'm sure there are many guys reading this and learning, not necessarily posting.
I just read an interesting article on the long term outlook on TGT. Any thought there? Seems like it fits our requirements...Not great growth over the last 10 years but they have been increasing their dividend along the way.
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There's only one way to do this -- and that's a bit of homework. Remember we want to own BEST OF BREED.... and to find that - - we need to have some comparative basis. So I like to look at Good chart - growth - dividend - Total return - and I use a 5 year comparison period just for ease of "what they're doing now". I don't want to be recommending or not recommending individual stocks --- I want YOU GUYS to be able to do this homework -- and my job is to give you what I look for (neither right or wrong - just my way).... but let's look at this stock and compare it to it's peers. It's a BIG BOX RETAILER (Consumer discretionary) so let's see how it stacks up:
Target (TGT) - 5 yr grwth DWN 18.18% - Div 2.39% - T/R 5 yr - DWN 13.2%
Sears (SHLD) - 5 yr DWN 73% - Div 0% - T/R 5 yr - DWN 71%
Macys (M) - 5 yr DWN 15.65% - Div 2.26% - T/R 5 yr DWN 4.2%
JC Pennys (JCP) - 5 yr DWN 57% - Div 2.28% - T/R 5 yr DWN 52%
Let's toss in another couple of big box stores - but they really don't sell clothing and pots and pans etc
Home Depot (HD) - 5 yr UP 10% - Div 2.61% - T/R 5 yr UP 28.5%
Best Buy (BBY) - 5 yr DWN 49% - Div 2.56 - T/R 5 yr DWN 45%
Lowes (LOW) - 5 yr DWN 22% - Div 2.11% - T/R 5 yr DWN 14.7%
So -- DUDE <Spicoli style> IF you can find one of those that you want to own... go for it.... but I'm going to wait for better signs that the economy is turning the corner - THEN while I might not buy at the very bottom - I'll catch some gains on the way up... but the DIVIDEND doesn't support my criteria of buying and holding waiting for things to get better... because there's no growth in this group/sector.
NOW ++++++ I didn't go compare every big box consumer discretionary stock! I just took these 'cause everyone knows them and it was an easy comparison for our purposes.