Keep an eye on excessively oversold shares of Target (TGT).
Oversold at double bottom support, with over-extensions on RSI, MACD, and Williams’ %R, we do expect to see Target start to pivot higher. In fact, from its last traded price of $89.72, we’d like to see it initially retest $105, which would refill its bearish gap.
While we wait for the pivot, we can at least collect Target dividends.
Last checked, TGT now yields 5.08%.
Even better, the retailer continues to hike its dividends. Its last dividend of $1.14 per share – which marks its 232nd dividend increase in 54 years – was paid out on September 1. Its next one for $1.14 per share will be paid on December 1 to shareholders of record as of November 12.
As noted by Target, “The 4th quarter dividend will be the company’s 233rd consecutive dividend paid since October 1967 when the company became publicly held.”
Additionally, we have to consider that Target’s current valuation factors in a great deal of negativity – especially as it traded at 10.5x earnings, as compared to Walmart’s 38.
Sincerely,
Ian Cooper
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