One of the best ways to protect your portfolio and generate income in tough times is with solid, dividend-paying stocks. Look at beaten-down shares of Target (TGT) for example. Not only is it likely to benefit from back-to-school sales, but also holiday sales. Plus, while investors wait for the retailer to recover, they can collect its latest dividend of $1.10 per share, payable on Dec. 10 to shareholders of record as of Nov. 15.
Even better, after a recent pullback to less than $107, the stock appears to have caught strong support again. From a current price of $110.36, we’d like to see TGT retest $125 near term. Helping, Bank of America recently upgraded the stock to a buy rating, with a price target of $135 a share. All with analysts expecting increased foot traffic in the next few months.