2nd Place is just fine for Rocco Mediate and Target (TGT)

With Wal-Mart (WMT) as your competition, there's no way you can can win 1st place, same can be said about playing golf against Tiger Woods.  But if you have to finish 2nd after Wal-Mart and Tiger, life is good if you are Rocco Mediate and Target Corporation (NYSE:TGT). 

Tiger Woods, who defeated Rocco Mediate in a playoff for the US Open title on Monday, was never scheduled to play the Travelers, although he is sure to be a hot topic this week after announcing he will undergo season-ending knee surgery.

Mediate, who saw Woods birdie the 18th hole on Sunday to force the playoff at Torrey Pines, then do the same at the 18th hole of the decider to force sudden death, had been scheduled to play but decided he needed a break.

"When the playoff went to Monday, obviously you think it's a very short week because (Mediate's) playing in the pro-am Wednesday," tournament director Nathan Grube told the Hartford Courant on Tuesday. "Did I think he was going to withdraw? No. Am I shocked that he did it? No. I can see both."

Now Target is much more popular than Rocco Mediate, and that's why the Masters want you to open your mind to its investment potential.

Wal-Mart shoppers are Target shoppers and vice-versa. Target makes sense to strapped U.S. consumbers thanks to rising food and energy prices and falling home values.  If Wal-Mart is going to do well, same can be said for Target. 

Another factor, Target itself is buying its stock. It has an aggressive $10 billion share buy-back program. It aims to have about half of that program complete by the end of 2008.

Last week Target raised its quarterly dividend 2 cents per share.  Doesn't sound like much but there aren't many companies alive that still pay a dividend, yet alone raising the payout.

Target declared a quarterly dividend of 16 cents per share, up from its previous dividend of 14 cents per share. The dividend is payable Sept. 10 to shareholders of record August 20, 2008, so if you like TGT, buy before that date.

In May, Target's chief financial officer said the retailer could potentially pay a higher dividend, following an increase to the payout last year.

"I clearly think that there's room to increase the dividend," Chief Financial Officer Doug Scovanner said at a Sanford C Bernstein & Co conference broadcast on the Internet last month.

For more information and analysis on Target's dividend, check out these stories:

Target: Consistent Dividend Growth History

Dividend Analysis: Target

Now to the stock price, Target shares have come down since the high's and should it fall even more, its an all out Buy.

The current outlook on Target is conservative and that's the right place to be currently, lower expectations allow for the possiblity of hitting reasonable targets and maybe even outperforming the norm.

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Recent Analyst take:

Disclaimer: No positions in TGT or WMT.