While the dividend is extremely safe (40% payout ratio; healthy free cash flow generation; conservative balance sheet), we don’t see a clear path for WMT to grow earnings or command a higher multiple from the market. As such, we will stick with the high quality dividend stocks we own ...
Target’s higher dividend yield is another attractive feature for income-focused investors. With a payout ratio that remains below 50%, Target’s dividends are not only safe but also positioned for future growth. The company has a strong track record of rewarding shareholders, and its ongoing c...