I've finally pulled the trigger on a stock that I've had in my portfolio for sometime now. I've held off on this company for sometime now waiting for the sentiment in the market to change around the whole retail section. Much like Target I've been waiting for the mood to change and for some up trends to occur.
Every time I purchase into a position I take a chance at enduring a lose or a gain. For this latest purchase I guess I didn't purchase in at the ideal time. The retail sector has been enjoying a bit of a comeback and I had thought it was an ideal time to jump in. Little did I know that Macy's would be releasing earnings statements and let's just say it wasn't what people were expecting.
This unfortunately caused the rest of the retail sector to break down into some pretty heavy loses. My position's in TGT and SKT of course took a beating but It's nothing that a dividend investor can't cope with. If anything. With SKT being put into an even more attractive position I may end up adding even more sooner then I had expected by the months end.
With all that being said. I added a new position to my portfolio which now puts my total company holdings at 18. I added 30 shares of SKT at $26.62 per share. This added to my annual dividend to the amount of $41.10. I'm really loving where this stock is currently trading and the current yield it provides of 5.48%. The company is also just a few quarters away from becoming a Dividend aristocrat which means they will have increased dividends paid out per year for 25 years. I know this company will do everything they can to make it to this next level and they won't let the past 24 years of increases go to waste.
The payout ratio for this company is also a bit higher then I typically like to invest in but I'm currently fine with taking a few chances with a dividend champion like this that offers a very impressive payout. The ratio for the last dividend payout was at 90%. The company currently has a Free cash flow amount of 135 Million which covers the dividend completely. I also Really like the dividend growth rate percentage of 5.48% and a 5 year growth rate of 9.6%.
I personally feel like there is way to much over hyped doom and gloom in the retail sector these days and I'm really loving the company at these levels. This is a relatively small position that I'm holding also and well see what the market holds for me down the road. I personally really like the outlook for this soon to be dividend aristocrat also and Ill be looking to add more later down the road depedning on what happens in the next few months.