SKT - Here's How Tanger Can Afford Its 4.3% Dividend Yield
2023-07-19 10:01:41 ET
Real estate investment trusts (REITs) are fertile ground for income investors. This is because REITs operate using a business model that allows them to avoid paying corporate income tax as long as they distribute 90% of their income as dividends to shareholders (who then take on some of the tax burden).
The key to REIT investing is to analyze whether the dividend is sustainable for the company you are interested in. Sustainability is a function mainly of earnings, but debt maturities matter as well.
Tanger Factory Outlet Centers (NYSE: SKT) stock is trading up 29% year to date and has a 4.3% dividend yield. Is this retail REIT's dividend sustainable?
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Here's How Tanger Can Afford Its 4.3% Dividend Yield