SKT

Tanger Factory Outlet Centers (SKT), a Greensboro-based REIT, is highlighted as a strong dividend play for income investors. The company offers a 3.56% dividend yield with an annualized dividend of $1.25, up 8.4% year-over-year. With a 51% payout ratio and expected earnings growth of 7.30% for 2026, SKT presents a balanced opportunity, though it carries a Zacks Rank of #3 (Hold).

The retail REIT industry faces headwinds from elevated borrowing costs, inflation, and consumer caution, but benefits from limited new supply and resilient necessity-based tenants. Zacks highlights Simon Property Group, Realty Income, and Tanger as solid stocks to consider, citing strong occupancy rates, healthy leasing activity, and solid liquidity despite the industry ranking in the bottom 27% of Zacks industries.

The Zacks REIT and Equity Trust - Retail industry faces pressure from elevated borrowing costs, inflation, and rising bond yields, which limit acquisitions and development. Consumer caution may weaken discretionary retail demand, while older properties face challenges from selective tenant preferences.

However, limited new supply and resilient necessity-based tenants provide some support. The industry ranks #181 out of 247 Zacks industries with dim near-term prospects, though three stocks are highlighted as solid considerations.