Please ensure Javascript is enabled for purposes of website accessibility

Tanger Factory Outlets Reinstates Dividend; Yield Is 5.5%

By Eric Volkman - Jan 14, 2021 at 8:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Improving fundamentals give the REIT scope for bringing back the payout.

After a nearly nine-month suspension, the quarterly dividend paid by Tanger Factory Outlets (SKT -0.06%) is coming back. The retail real estate investment trust (REIT) announced Thursday that it is reinstating its payout with a nearly $0.18 per share disbursement. This will be paid on Feb. 12 to investors of record as of Jan. 29.

At the most recent closing stock price, that dividend would yield 5.5%.

The company said in the press release heralding the reinstatement that it "reflects Tanger's strong liquidity position, with more than $80 million of cash on hand and $600 million of undrawn lines of credit, and the Board's confidence in our business, as demonstrated by the positive traffic and rent collections trends we recently reported."

DIVIDEND written in wooden blocks.

Image source: Getty Images.

In an operational and financial update released on Monday, Tanger revealed that in Q4, the customer traffic at its discount shopping malls reached 90% of the level in the same period the previous year. This indicates a continued recovery from the privations of the coronavirus outbreak, which hit the retail sector particularly hard due to a raft of mandatory and voluntary store closures.

As for collections, Tanger said in the update that they topped 90% of total rents during the quarter.

The company seems to be aiming for permanent reinstatement of its dividend. It said that it "currently intends to satisfy minimum taxable income distribution requirements to maintain its REIT status."

Since dividends are often the main -- or even only -- reason for some to plow money into REITs, investors were very happy about Tanger's news. The company's stock rose by almost 10% on Thursday, in marked contrast to the fall of the S&P 500 index.

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tanger Factory Outlet Centers, Inc. Stock Quote
Tanger Factory Outlet Centers, Inc.
SKT
$16.10 (-0.06%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.