Dividend Investing: Is Tanger Factory Outlet Centers (SKT) Worth Your Attention?
Dividends are a cherished reward for long-term investors. They provide a steady income stream, helping to offset the volatility often associated with the stock market. However, finding a dividend stock that truly delivers requires thorough research. In this article, we’ll take a closer look at Tanger Factory Outlet Centers (SKT) and investigate whether it’s a worthy addition to your dividend portfolio.
About Tanger Factory Outlet Centers (SKT)
Tanger Factory Outlet Centers is a leading owner, operator, and developer of factory outlet centers in North America. The company’s portfolio consists of 47 centers in 22 states and in Canada, with over 7,300 leased outlet store spaces. Tanger Factory Outlet Centers is known for its unique, open-air retail environment.
Financial Performance
Let’s examine some financial metrics to determine if Tanger Factory Outlet Centers is a strong dividend contender. The company has paid a consistent dividend since 1993, increasing it annually for the past 27 years. This impressive streak makes Tanger a member of the Dividend Aristocrats – a select group of S&P 500 companies with 25+ consecutive years of dividend increases.
- Current Dividend Yield: Tanger’s current dividend yield is approximately 4.3%.
- Payout Ratio: The company’s payout ratio is around 67%, indicating that it has sufficient earnings to cover its dividend payments.
- Dividend Growth: Over the past five years, Tanger has grown its dividend at an average rate of 3.5% per year.
Impact on Individual Investors
For individual investors, Tanger Factory Outlet Centers offers a consistent and relatively high dividend yield. This can help provide a stable income stream, especially for those living off their investments in retirement. Furthermore, the company’s long history of annual dividend increases demonstrates its commitment to rewarding shareholders.
Impact on the World
On a larger scale, Tanger Factory Outlet Centers contributes to the economy by generating employment opportunities and driving economic activity. Its factory outlet centers attract tourists and shoppers, generating sales for the stores located within and fueling local economies. Additionally, the company’s commitment to sustainability and community engagement further cements its positive impact on the world.
Conclusion
In conclusion, Tanger Factory Outlet Centers (SKT) is a strong contender for dividend investors seeking consistent income and long-term growth. Its impressive financial metrics, including a long-standing record of annual dividend increases, a reasonable payout ratio, and a relatively high dividend yield, make it an attractive option. Furthermore, the company’s positive impact on both individual investors and the world at large underscores its value as a solid dividend stock. However, as with any investment, it’s essential to conduct thorough research and consider your personal financial goals and risk tolerance before making a decision.
