Retail Stocks to Watch: Tanger and Target Dividend Insights

Investors should take note of Tanger and Target as dividend stocks. Tanger shows promising occupancy and growth rates, while Target's sales are stabilizing post-pandemic, making them solid choices for long-term investors.

Date: 22-02-2025

AI Rating: 7

Growth and Performance Metrics
Tanger has shown impressive growth indicators, particularly in occupancy rates, which are now at their highest in over a decade. With a significant portion of their rental base due for renewal, they have the potential to increase rents. Additionally, their strategic acquisitions signal potential for future growth.

Target experienced positive sales performance during the holiday season, with comparable sales increasing by 2% and a notable 9% growth in digital sales. The improvement in discretionary items is a good sign for its recovery trajectory.

Both companies offer dividends that are well-supported by their operational performance, indicating a favorable landscape for investors seeking income. Tanger's dividend is well covered by funds from operations, consuming only 51%, demonstrating solid profitability potential.

Key Financial Highlights

Earnings Per Share (EPS): Target aims for adjusted EPS between $8.30 and $8.90 for 2024, providing a positive outlook for earnings.
Free Cash Flow (FCF): Not directly mentioned, but their ability to cover dividends and secure acquisitions suggests healthy cash flow management.

Considering the overall context of inflation and tariffs, both companies are poised to meet challenges, but their robust operational metrics instill confidence for continued investor interest. Investors should closely monitor these stocks for potential dividend growth amid an evolving retail landscape.

Stocks: SKT TGT