Loyal3 Purchase: Target

Late last week I initiated a transaction for TGT in my Loyal3 account.   When you use a credit card (or a portion of the transaction goes on a card) it takes approximately 2 business days for the transaction to complete.  I had collected about $21 dollars in dividends and used another 29 from my budget for this transaction.  The purchase executed the following:

.8740 shares @ $57.21 adds ~$1.82 for the year

This purchase still leaves my portfolio with plenty of room for additional shares of TGT, which I may buy a larger stake soon depending on the availability/valuation of other dividend stocks.

TGT has had an interesting year.   TGT continues to have fallout from the customer data breach of last year.   This is the sad reality of the ever changing technology landscape.  Coming from a software background, the frequency of these events doesn’t surprise me and on a number of occasions my credit card has been stolen.   Fortunately, I have an aggressive bank that “knows me” well enough to stop those charges.  TGT is taking the event seriously and rolling out a series of changes that I feel will help mitigate future issues.  They have since hired Brad Maiorino to serve as the Chief Information Security Officer.

Oh Canada! TGT has struggled in Canada.  Have you seen those pictures of TGT stores with empty shelves? Google away if you haven’t.  Since that escapade, TGT has axed the leader of their Canadian operations.  I am not surprised that they struggled in Canada, WMT did too.  It does boggle me a bit that they didn’t learn from WMT’s mistakes.  As long as Target realizes that “Canadians are not Americans”, they should get on the right track.

The latest news is a massive dividend increase of 20.9%.  This raises the current yield to about 3.6% with $2.08 paid out yearly.  This was very surprising, I had expected a smaller dividend increase than the previous years given the preceding events.  I do like this move, it tells me that they are serious about the dividend and that it remains a priority.

Depending on the moves of the market, I may continue to add to TGT or one of the other positions that I currently hold in the Loyal3 account.

Thanks for reading!

Disclaimer: Long WMT,TGT

Loyal3 Purchase: TGT, MAT, MCD, UL

The house is moving right along.  I had a few extra dollars from the budget and so I decided to use it to add to a few of my existing positions in my Loyal3 account.

Changes to purchases

Recently Loyal3 changed how you can buy with a credit card.  You are able to buy up to 2500 dollars of an individual company per month.  Now, the total amount is the same, but if you use a credit card you can only buy in 10, 25 or 50 dollar lots.  I’m guessing people were taking advantage of the credit card rewards of several percent and then selling the stock quickly.  This would increase the transaction cost to Loyal3 and goes against the purpose of the brokerage.  They want to foster long term ownership and brand loyalty.

I added $25 to…

Mattel (MAT):  .6447 @ 38.77 (Executed on May 19)

Unilever (UL):  .5453 @ 45.84 (Executed on May 19) – I had erroneously stated that my only exposure to products of consumer goods was PG.  UL is one of my positions that I forget I have, along with EMR and LEG.

McDonalds (MCD): .2445 @ 102.22 (Executed on May 19)

Target (TGT): .4403 @ 56.77 (Executed on May 21)

I actually goofed and used my bank account for the TGT transaction, which takes longer to execute. In this case it benefited me because TGT had a reasonable drop from May 19 to 21.

Goal going forward

I am planning on trying to use 100 dollars each month from my budget to add to my Loyal3 positions.  I feel like this is possible and probably not much of a stretch goal.  I will probably not worry too much about portfolio weight, value or dividend yield when picking among my positions in the account.  The 100 dollars will be split anywhere from 1-4 companies.

I had added the goal to my goal pages and will update my positions page to reflect the new shares at the beginning of June.

Disclaimer: Long EMR, LEG, MAT, MCD, PG, TGT, UL