The Rush for Dividends Reaches this Large Retailer
The market is still going wild for dividends. Target (TGT) is the latest example…
Over the past few years, we’ve stressed the importance of dividends and high-quality stocks dozens of times in DailyWealth. In a world full of risk and fraud, getting paid steady and growing dividends is one of the market’s best strategies. You can read a few of our best pieces on the idea here, here, and here.
This idea was heavily “stress tested” in 2011. The broad market went through huge swings… and was crushed during the summer panic. Some of the market’s riskier companies fell 25%-50% in just a few months. But most of our favorite dividend-payers – like Coke, Intel, and Wal-Mart – held up just fine. Read about this phenomenon here.
Our guess is that in 2012, more and more people recognize the safety and income-producing power of basic dividend-payers. With interest rates low, the fashionable thing on Wall Street will be for fund managers to say, “I own blue-chip dividend-payers.”
You can see this idea working on shares of Target. Target is one of our colleague Dan Ferris’ favorite steady dividend-payers. In just the past two months, Target has climbed 18%… which is a huge move for a large company in such a short time. The “rush for dividends” is on!