This morning I purchased 40 shares of Target (TGT) for a price of $61.81 per share. With the current dividend payment of $1.44 I was able to pick up the shares for a 2.32% YOC. I've been following Target for a while and the price just never quite got to where I felt comfortable jumping in until now. I'm hoping for a further pullback to allow me to average down a bit in the position. If you remember from my recent stock analysis on Target I calculated a fair entry price of $60.65. I paid 2.25% over that price but I feel that this is a good starting point for my position in Target and I'll give it some time to see if there's a pullback. If it stays flat then I'll probably be picking up some more shares unless there's other opportunities that are more appealing.
Based on the current annual dividend payment I'll be receiving an extra $57.60 in yearly payouts before further increases or reinvestment. Target was very appealing because they are a dividend champion with 45 consecutive years of dividend growth with a 10 year annual dividend growth rate over 17%. I know it seems like every time I walk into one of their stores I can't leave without buying almost $100 of stuff. Unfortunately I won't be receiving any dividends from them this year since I just missed the last ex-div date but I plan on holding Target for a very long time so that won't make that big of a difference in the end. My YOC for my portfolio decreased with this purchase from 2.93% to 2.90%.
My forward 12-month dividends for my FI portfolio now sits at $1,496.68. I made so much more progress than I thought I would at the beginning of the year. I was pretty sure I wouldn't reach my $1,000 in dividends received mainly due to there being debt that needed to get paid off before I could really start investing. After the 1st quarter of the year my forward dividends stood right around $450 and since then I've been able to increase them by $1,000. I still have enough cash to make at least 2 purchases and possibly 3 if I make slightly smaller purchases. One company that I'm hoping to get the chance to buy is Chevron (CVX), although I might have just missed the price drop into my safe buy zone.