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Target Corp, known by the ticker symbol TGT,  is a large-cap discount stores company, operating in the consumer defensive business sector. This is my first report on TGT for this Viital portfolio or any of my previous six dog of the week portfolios.

With 1,897 stores (as of the end of fiscal 2020), Target is a leading American general merchandise retailer, offering a variety of products across several categories, including beauty and household essentials (26% of fiscal 2020 sales), food and beverage (20%), home furnishings and décor (20%), hardlines (18%), and apparel and accessories (16%). 

Most of Target’s stores are large, averaging nearly 130,000 square feet. The company has a significant e-commerce presence, deriving around 18% of sales from the channel (up from about 9% in fiscal 2019, before the pandemic). 

In addition to its namesake stores, Target owns Shipt, an online same-day delivery platform. After it exited Canada in 2015, virtually all of Target’s revenue is generated from the United States.

Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.

Three key data points gauge any dividend equity or fund such as Target Corp (TGT):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

TGT Price

Target's price per share was $189.79 as of yesterday's market close. One year ago its price was $186.36. Therefore Kroger's share price increased $3.43 or 1.84% in the past year.

If Target's stock trades in the range of $160.00 to $200.00 this next year, its recent $189.79 share price might rise by $39.21 to reach $229.00 by February 24, 2023. This estimate is  $40.62 below the median of target prices estimated by 29 analysts covering Target for their brokerages.

TGT Dividends

Target's most recent quarterly dividend of $0.90 is payable March 10th, to shareholders on record as of February 15th.  The TGT  Annual estimated dividend payout per share of $3.60 yields 1.90% per yesterday's $189.79. closing price. 

Target has paid regular quarterly dividend payouts generally increasing annually since March, 1989. That stretch will mark 33 years come March 10.

TGT Returns

Adding the $3.60 annual Target forward-looking dividend to its estimated one-year price upside of $39.21 shows a $42.81 potential gross gain, per share, to be reduced by any costs to trade TGT shares.  

At yesterday's $189.79 price per share, a little under $1000 would buy 5 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us  $2.00 per share.

Subtract that maybe $2.00 brokerage cost from my estimated $42.81 gross gain estimate per share results in a net gain of $40.81 X 5 shares = $204.05 for a 21.5% net gain on a $948.95 investment.

So it is that Target Corp (TGT) shows a possible 21.5% net gain including a 1.9% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Target Corp (TGT) could generate $19.00 in cash dividends alone. Note that a single share of TGT stock bought at yesterday's share price of $189.79 is almost 10 times greater than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a terrible time to pickup Target Corp (TGT) shares. The estimated next-year dividend from $1K invested is 9.98 times LESS than yesterday's single share price of TGT. Consider yourself alerted. Its a sign!  Wait for Target's share price to drop to $60.00

All of the estimates above are speculation based on the past history of Target Corp (TGT). Only time and money invested in this stock will determine its market value.