I opened a new position with the purchase of Tanger Factory Outlet Centers, Inc. (SKT)
126 shares @ $16.50 on 6/14/2019.
This increases my forward 12-month dividend income by $178.92 to a total of $8,788.40. I also updated my portfolio page to reflect the change.
This is my second buy lot of this company. I first made my first purchased on April 16. Since that time the stock price has decreased. I believed that the company was underpriced when I first purchased it, and now it is even more undervalued to my intrinsic value.
The company has been increasing its dividends for 26 constitutive years. They sport a 5-year and 10-year dividend growth rate of 9.5% and 6.4% respectively. Tanger most recent dividend increase was earlier this year of just 1.4%.
I do not see them increase its dividend more then 2-3% for the foreseeable future. The company is currently having issues with filling up vacancies spots as well as consumers are continue to move to e-commerce.
Currently, SKT has a dividend payout ratio of 63% based on projected AFFO of $2.24 for 2019.
I find SKT to be undervalued, and I recommend it as a BUY at this time. I have a fair value price at $26.35. This means that SKT is 62.5% Undervalued based on today’s price of $16.21 (6/30/2019).
What do you think about the company? Plan on owning it or already do? or why not?
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