Will History Trump Economics for This 9.8% Yielder?

This retailer's dividend safety may be secure, but its decreasing cash flow bears watching.

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Will History Trump Economics for This 9.8% Yielder? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club "Leaked" D.C. Video Footage Exposes AOC Controversy During her campaign, Alexandria Ocasio-Cortez said, "A Democrat who takes corporate money... cannot possibly represent us." Well, news flash: Our investigative team JUST returned from Washington, D.C., where we caught AOC live on camera. And the facts we've uncovered about AOC and "taking money" just might SINK HER CAREER. To see the SHOCKING, EXCLUSIVE video, just click here.   A year ago, my colleague Kristin Orman looked at Tanger Factory Outlet Centers (NYSE: SKT) and determined the stock deserved a "B" rating for dividend safety. At the time, Kristin wrote...   We usually don't like to see declining cash flows. But Tanger's low payout ratio and history of raises make the dividend a safe bet. However, if AFFO declines again in 2019, Tanger's safety rating could fall with it.   AFFO stands for adjusted funds from operations - a measure of cash flow for real estate investment trusts (REITs).   Question of the Week   While working, how much of your income did you (or do you) allocate to savings each month? Click here to answer.   The issue that caught Kristin's eye was that at that point in 2018, management's guidance for AFFO was lower than it had been the year before. Let's see if we still have reason for concern... Tanger Factory Outlets owns and operates 39 outlet shopping centers in 20 states and Canada. You may have seen recent news that vacancies at shopping malls hit an eight-year high in the third quarter. Nearly 10% of storefronts are vacant. Tanger is holding up better than most. In the second quarter, it reported a 96% occupancy rate, which is up from 95.4% the previous quarter and 95.6% a year ago. However, it is down from 97% at the end of 2016. In 2018, AFFO was better than management expected but still slightly below the 2017 total. This year, AFFO is forecast to shrink again, this time by a meaningful amount. Now, recall that last year, management guided toward low AFFO and it came in higher than expected. So perhaps it's sandbagging again this year so that the end results beat expectations. But considering AFFO will likely be down for the second year in a row, it is something to keep an eye on.   The P-E-R-F-E-C-T Drink A simple, three-ingredient drink is stunning doctors. It blasts away cancer, inflammation, Alzheimer's, high blood pressure... and even erectile dysfunction. One glass of this delicious drink each morning is all it takes. Click here for the simple recipe.   Last year, the payout ratio was a comfortable 54%, though if this year's results come in at the $164 million projected, the payout ratio will be 82%. This would be fine, but it would indicate that the payout was starting to get a little high. Tanger does, however, have history on its side. It has raised its dividend for 25 years in a row. The quarter-of-a-century track record of annual dividend raises is significant. Management has made it clear that the dividend is important. I believe management will do whatever it can to continue to raise the dividend, which is currently yielding 9.8%. However, the lower cash flow is a concern. I'll keep an eye on it. But for the near future, the dividend appears safe. Dividend Safety Rating: B If you have a stock whose dividend safety you'd like me to analyze, leave the ticker in the comments section. You can also search the site to see if I've written about your favorite stock recently. Just click the magnifying glass and type in the name of the company (names get better search results than ticker symbols). Good investing, Marc   Click Here to Comment   Bill O'Reilly Pays Money to Be a Member of This Mysterious Club (See Why)   The club's leader shakes hands with Bill O'Reilly   It's not Scientology or anything like that. But you've got to see the unusual club Bill O'Reilly belongs to here.   - More From Wealthy Retirement -     Think Twice Before Handing Healthcare Providers a Blank Check More seniors than ever are declaring bankruptcy - and many were driven there by high medical bills.   "The Company Can't Afford Its Dividend - What Am I Missing?" It's imperative for investors to consider cash flow to get an accurate picture of a company's dividend safety.   A Good Story Does Not Make a Good Investment Emotional investing carries a significant risk - and few companies can live up to the expectations it sets.       NO MORE OUCH! Finally... say goodbye to joint pain for good! Banned by the U.S. government for 82 years, this miracle remedy is now 100% legal... and I want to send you three FREE bottles today! Hands, back, wrists, knees, shoulders... it works anywhere you hurt.   You are receiving this email because you subscribed to Wealthy Retirement. To unsubscribe from Wealthy Retirement, click here. Need help with your account? Click here. Have a question or comment for the editor? Click here. Please do not reply to this email as it goes to an unmonitored inbox. To cancel by mail or for any other subscription issues, write us at: Wealthy Retirement | Attn: Member Services | 105 West Monument Street | Baltimore, MD 21201 North America: 1.855.402.3939 | International: +1.443.353.4057 | Fax: 1.410.329.1923 Website: www.wealthyretirement.com Keep the emails you value from falling into your spam folder. 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