Is Tanger Outlets Stock a Buy?
It didn't take long for Tanger Factory Outlet Centers (NYSE: SKT) to go from a busted dividend stock to a profitable candidate for income investors. The operator of 38 upscale outlet shopping centers announced on Thursday that it's resuming its quarterly distributions, an important move in more ways than the obvious.
When Tanger cuts its first dividend check in a couple of weeks it will be its first payout in nine months. The cash distribution of $0.1775 a share -- or $0.71 a share on an annualized basis -- represents a yield of 6.1% when the announcement was made (or 5.5% as of Thursday's close given the pop in the shares). In this low interest rate environment it's going to turn heads despite the inherent risks that I'll dive into shortly. More importantly, as a real estate investment trust (REIT) Tanger has to distribute at least 90% of its taxable income to investors. It is telegraphing just two weeks into 2021 that it expects to be profitable this year, and that's just one of the reasons why Tanger Factory Outlet Centers is a buy right now.
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Source Fool.com
