Jason Fieber, Mr. Free at 33

Undervalued Dividend Growth Stock of the Week: Target Corporation (TGT)

This company has one of the most incredible dividend growth track records in all of business. Not only has it paid an increasing dividend for 50 consecutive years, but over the last decade the company has grown its dividend at an annual rate of 18.1%. In addition, its payout ratio is now sitting at a “perfect” 50%. On top of all of this, shares yield 4.2% and are potentially 8% undervalued at current prices. If you’re looking for a big yield and decades of dividend growth all wrapped up in an undervalued package, this stock could be for you.

Reader Mailbag: “I’d like to earn extra money in hopes for a new home. Early retirement would also be great!”

Larry, you have two pretty large goals here: buying a new house one one hand, retiring early on the other. The first thing I’ll say is that accomplishing the two concurrently could be difficult, but that largely depends on your means, age, and time frame (for both goals). That said, amazing things can be accomplished in a short time frame, even with relatively modest means…

Reader Mailbag: “I’d like to purchase a $550,000 home next summer and pay cash for it. I have very little money to start with.”

Hi Martin, that’s an incredibly lofty goal you have there. To start with very little and end up being able to pay $550,000 cash for a house in less than a year sounds, well, impossible. Unfortunately, there’s no investment guru in the world who’s going to be able to get you from A to B magically. That’s just not how investing works. And so what I’m going to do for you is provide some food for thought and make sure you have reasonable expectations.