Over the past two decades, Target, the big Minneapolis-based discounter, defined the concept of cheap chic.
The strategy worked splendidly until the financial meltdown of 2008-09 when America headed for Wal-Mart, which offered even lower prices, and the heck with style. As customers fled, Target's sales and profits tumbled.
Now, though, Target (TGT) has come up with a promising comeback plan. Two bold initiatives now under way — rolling out fresh groceries in more of its stores and, starting this fall, offering 5% discounts on nearly all purchases made with Target REDcards — should help a lot. So should the company's tight expense controls and strong cash flow.
On top of it all, Target investors are getting paid to wait. The company has paid dividends for 171 consecutive quarters, or more than 42 years, and lifted its quarterly payout by 47% in June, to 25 cents a share from 17 cents, for a current yield of 1.9%.
To read the rest of the story, please go to: The Wall Street Journal.