2 Smart Dividend Stocks to Buy and Hold

Core Insights - Dividend investors should be selective, looking for reasonable yields, a strong dividend history, profitability, and growth potential [1] Company Analysis: Tanger - Tanger operates 42 outlet and open-air retail centers in the U.S. and Canada, achieving its highest occupancy rate in over a decade in 2024 [3] - The company has opportunities to increase rents as over 40% of its rental base is due for renewal in the next two years [3] - Tanger is expanding its property portfolio through acquisitions, including a $73 million shopping center in Little Rock and a$167 million mixed-use center in Cleveland [4] - The company maintains a healthy balance sheet with $1.5 billion in net debt, mostly at fixed rates, and no debt maturities this year [5] - Tanger pays a quarterly dividend of$0.275 per share, yielding about 3%, and expects core funds from operations to grow by up to 8% in 2025, indicating potential for a dividend increase [6][7] Company Analysis: Target - Target reported a 2% increase in comparable sales during the holiday season, with digital sales up 9% and significant growth in same-day delivery [8] - The company anticipates adjusted earnings per share between $8.30 and$8.90 for 2024, resulting in a price-to-earnings ratio of about 15 [9] - Target has a long dividend history, currently paying a quarterly dividend of $1.12 per share, yielding approximately 3.5% [10] - The company faces challenges from tariffs and inflation, similar to its competitor Walmart, which may impact its outlook for 2025 [11] - Target's shares have declined over 50% from their all-time high, but improving sales in key categories make it attractive for long-term dividend investors [12]