Target Corporation (TGT) Purchased 5/23/2016

In the summer of 2003, I made my first individual stock purchase:  Target Corporation (TGT).  I purchased the stock at a price that was overvalued at around $38 a share.  Over the past fourteen years, earnings at TGT have grown by about 8% per year, but the stock price only grew by about 5% per year. That can be explained by the fact that I purchased the stock when it was overvalued, and now it is undervalued and in the "green zone".

The stock was also undervalued last spring when I bought more TGT.  The dividend rate at the time was over 3.2%, and the stock had a history of growing dividends.  As a matter of fact, the dividend had grown 8 times over the time period (although the business had not even grown by three times).

But the undervalued stock price helped me make the decision to purchase some more of the stock for my "nonPension" portfolio.  It turns out that I would have made a better decision to hold off on buying TGT now rather than then.  The dividend has risen since then and the price has fallen since then.  Now the yield is closer to 3.8%.