Why Tanger (SKT) is a Great Dividend Stock Right Now

Company Overview - Tanger (SKT) is headquartered in Greensboro and operates in the Finance sector, with a year-to-date stock price change of 6.56% [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 3.29%, which is lower than the REIT and Equity Trust - Retail industry's yield of 3.98% but higher than the S&P 500's yield of 1.37% [3] Dividend Performance - The current annualized dividend of Tanger is $1.17, reflecting a 1.5% increase from the previous year [4] - Over the past 5 years, Tanger has increased its dividend 4 times year-over-year, achieving an average annual increase of 14.37% [4] - The company's current payout ratio is 52%, indicating that it pays out 52% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year, SKT anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $2.43 per share, representing a 4.29% increase from the previous year [5] - The attractiveness of dividends is highlighted by their ability to enhance stock investing profits, reduce overall portfolio risk, and provide tax advantages [5] Investment Considerations - High-growth firms or tech start-ups typically do not offer dividends, while larger, established companies are often viewed as better dividend options [6] - Income investors should be aware that high-yielding stocks may face challenges during periods of rising interest rates; however, SKT is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [6]