SKT - 1 Dividend Stock Yielding 5.2% to Buy Before the Next Recession
2023-05-10 08:20:00 ET
Recessions can be rough for the retail industry as consumers pull back on spending and become more conscious of where their money goes. Tanger Outlets (NYSE: SKT) , which operates 37 outlet centers in major tourist destinations and suburbs of growing cities, should be able to weather the storm by offering great deals to consumers and a low-cost, high-margin channel for retailers.
Tanger was hit hard in the early days of the pandemic as stores were forced to close, but the real estate investment trust was able to battle through the period of depressed occupancy. Its portfolio of open-air outlet centers certainly helped, as did the company's policy to offer deferred rent payments for tenants in early 2020. Losing fewer tenants made Tanger's post-pandemic recovery less of an uphill battle.
Today, Tanger is mostly back to business as usual. The tenant base remains highly diversified, with the largest tenant accounting for just 6% of the annualized base rent. Occupancy has also recovered, reaching 96.5% in the first quarter of 2023. That's still slightly below pre-pandemic levels, but not by much.
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1 Dividend Stock Yielding 5.2% to Buy Before the Next Recession