Three Small-Cap Dividend Achievers: Tanger Factory Outlet Centers Inc. (SKT), Owens & Minor, Inc. (OMI), Sovran Self Storage Inc (SSS)

The second company is Tanger Factory Outlet Centers Inc. (NYSE:SKT), a real estate investment trust. I do not have any REITs in my portfolio at this point – usually their recent 12-month return is very low (if not negative), and there are not very many that meet the 10 years of dividend raises that I consider as necessary for my selections.

Tanger Factory Outlet Centers Inc. (NYSE:SKT) is currently trading at approximately $35 and yields 2.4%. It has raised dividends every year for 19 years, its 5-year DGR is 3.2%, and it has returned 22.5% over the past twelve months.

The analysts’ 5-year annual growth estimate is 7.6%, the company’s PE is 63.2 and its dividend-payout ratio is 162%.

Tanger Factory Outlet Centers Inc. (NYSE:SKT) Outlet Centers scores very low on my ratings system; while its total 12-month return is attractive, its valuation is too high, and its growth history of raising dividends is too low.

The third company on the list is Sovran Self Storage Inc (NYSE:SSS), which operates self-storage facilities in 25 states. The aforementioned article examining this company states that the company has raised dividends consistently for 17 consecutive years.

However, when I looked into this company, I quickly realized that this is not true. I don’t know where the other author found his information, but it is clear to me that Sovran Self Storage Inc (NYSE:SSS) cut their dividend in 2009, presumably as revenues declined during the worst part of the Great Recession.

Since then, the dividend has been held frozen for three years and has just been raised with the last distribution that was paid in January, 2013.

I don’t want to disparage the other author, but I do want to let my readers know when I find that false information has been published. The other author claimed that all three of these companies are “quality small-cap dividend payers.” I must respectfully disagree.

The article Three Small-Cap Dividend Achievers originally appeared on Fool.com and is written by Karin Hernandez.

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