Target Corporation (NYSE:TGT)

Target Corporation, located in Minneapolis, Minnesota, is the fifth-largest retailer in the United States by volume, behind Wal-Mart, Home Depot, Kroger and Costco, and second among hard discounters. The company, founded in 1902 already, ranks 38^e Fortune 500 ranking in 2012. Target currently operates in the U.S. market, but with the recent acquisition of the majority of Canadian chain Zellers, the company plans to open 100 to 150 stores in Canada by the end of 2013. Target generates revenue from sales of clothing, electronics and housewares. Target has carved out a niche as a "cheap chic" retailer.

TGT's current yield is modest at 2.40%, but significantly higher than its long-term average of 1.86%. average annual dividend growth on the other hand is very attractive, with 25.32%. In addition, the company has managed to increase the pocket money of its shareholders during 41 consecutive years, which is remarkable. Despite this dividend growth, the distribution ratio remains very cautious, with only 29.26%. This leaves plenty of room to continue growing the dividend, even in the event of a difficult passage.

The stock has shown a strong performance since 1995. The volatility, at 14.87%, is slightly higher than that of my portfolio and that of the market, but remains correct all the same. The beta of 0.87 confirms that TGT is quite sensitive to market variations.

The value of the security in CHF is sensitive to dollar fluctuations, with a $risk of 0.55. A fall in the greenback is thus usually also accompanied by a fall in the value of the security in CHF, which increases the risk. The current expansion in Canada should correct this negative effect somewhat.

TGT is a dynamic stock, with very good dividend growth and a low payout ratio. Since my last analysis last year, both currency risk and volatility have calmed down, which means that TGT now receives 4 stars, a sign of a very good risk/return ratio. It is highly likely that I will take a position on this stock sometime this year.