The past several years have not been very kind to investors in Tanger Factory Outlet Centers (NYSE: SKT). The owner of outdoor outlet malls has seen its shares lose more than two-thirds of their value from the 2016 peak, and now trade at 10-year-lows. Moreover, the sell-off in its shares has pushed the dividend yield up to almost 11% at recent prices.
On one hand, this may look like a classic dividend trap, with a super-high yield that looks appealing but will almost surely end up getting cut. Moreover, there's plenty of reason to expect that to be true without even researching the company. After all, it owns malls, right? There aren't many worse businesses to be in right now, as the convenience of e-commerce lays waste to the traditional retail landscape.
Short selling has driven Tanger's stock to 10-year lows. One investor thinks it's time to take the other side of that bet. Image source: Getty Images.