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[Tuff-Stuff]

2 Blue-Chip Dividend Growth Stocks On Sale
Feb. 22, 2017 10:55 PM ET|
Includes: TGT, VZ

Summary

While top line growth has been elusive for Target, strong margins and healthy share buybacks help drive earnings growth.

Verizon is also struggling to grow the top line, but the current (and healthy) 4.7% yield is hard to ignore.

Both companies appear to be trading at a discount to their historical norms.

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Introduction

The stock market continues higher and higher, seemingly unabated. Valuations have become stretched - are there any values still remaining? I contend there are, and I would like to highlight two of them.

As individual stock pickers, it is imperative that we select our equities carefully. We must be mindful of the business arena in which the company operates, its business fundamentals and prospects. After deciding that a business is worth investment dollars, it is then crucial that we buy at a reasonable valuation.

Buying at a reasonable valuation will give us more shares for our investment dollar, more dividend income (for dividend stocks) and, ultimately, a better total return potential. On the flip side, buying shares when valuations are stretched reduces our ownership in the company for our investment dollar, provides less dividend income and potentially leaves us being the "bag holder" if market expectations sour.

With that introduction, I would like to present two investment ideas.

Target (TGT)

cont @ http://seekingalpha.com/article/4048653-2-blue-chip-dividend-growth-stocks-sale