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Posted by
Two Blokes May 11 -
Filed in
Stock
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4 views
Higher tariffs can lower discretionary receipts and pressure TGT's profits. But the risks are already priced in judging either by dividend yield or P/E. TGT's current dividend yield is not only significantly above the historical average but also close to the peak level in at least 10 years, signaling unusually attractive valuation. A P/E of 10x implies less than 1% annual growth potential according to Graham's P/E.
