Discount shopping? Look no further than Tanger Outlets

Tanger (SKT), known for the discount deals peppered throughout its outlet malls, has seen its stock price fall to a pretty decent deal of its own over the course of the last year or so.

I don’t do a lot of shopping at Tanger. It did recently open an outlet mall pretty close to my house, but still. I couldn’t help but do some shopping for Tanger based on its current prices, though. The stock is down 35.61% over the last year and 6.62% in the last three months.

I’ve been looking at scooping up a few shares for several weeks. I finally bought some Wednesday.

Today’s purchase: 3 shares of Tanger

I’m freaked out about Amazon just as much as the next guy. Retail is in a weird place right now. Tanger, though, being an outlet mall, doesn’t have to worry about Amazon as much as some other places. It sells last year’s stuff, right? Meaning people aren’t going to Tanger to buy clothes they can get on Amazon. They’re going to buy quality, name-brand stuff that may be a a bit past its prime in terms of popularity.

Regardless, Tanger is doing well enough to justify buying a few shares. It has a profit margin of 24.08% and, despite the fear that Amazon will eventually take over the world, I’m betting Tanger hangs around for quite some time. It really, in my opinion, can’t go anywhere from here but up.

I already had one share, so the three I bought Wednesday for $74.22 ($24.74/share) boosted my position pretty substantially. My first share, which I bought for $26.30 earlier this year, made up 0.17% of my portfolio. It produced $1.37 in annualized dividend income. Thanks to the purchase, I now have four shares with a cost-basis of $25.13 that make up 0.68% of my Dividend Farm. The four shares will produce $5.48 of forward annual dividend income, meaning I boosted my yearly income by $4.11.

With a dividend yield of 5.37% and a P/E ratio of 16.88, I don’t think discounts get much deeper than this. Oh, and Tanger has been growing its dividend each of the last 24 years, including a 12.5% annualized clip over the course of the last three.

I spent pretty much the same amount as I did yesterday, when I bought a share of Colgate (CL), but increased my forward annual income by 156% more ($4.11 thanks to the three shares of SKT compared to just $1.60 courtesy of the one share of CL).

Colgate is also trading a mere 5% below its 52-week high. Don’t get me wrong, I’m thrilled I added Colgate to my portfolio, but I’m just trying to point out what a great deal Tanger is for those of use who are dividend hunters.

That’s all for now.

March on!

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