Dividend increases

Good news has been hard to come by this year but there is some. Tanger Factory Outlet Centers (SKT), an REIT which owns malls, increased the distribution for the 16th consecutive year (since going public). OK, the annual increase was only a penny to 1.53. But an increase is an increase, especially for a mall owner.

• Tanger Increases Dividend For 16th Consecutive YearPR Newswire(Thu, Apr 9)

In all fairness, Simon Property (SPG), the largest shopping center & mall REIT has held theirs flat, at least in Q1. They may increase the 3.60 rate later in the year, if they feel they afford it, to extend their streak of higher annual divs.


Plains All American Pipeline (PAA), a healthy MLP, increased their distribution in Q2 to an annualized rate of 3.62, 1.4% above the prior distribution & 4.6% above last year. They also gave guidance that their financials are very healthy.

• Plains All American Pipeline, L.P. Declares Increased Distribution on Limited Partner Units; Comments on Favorable Liquidity Position and First-Quarter GuidanceBusiness Wire(Wed, Apr 8)

Kinder Morgan (KMP), the largest MLP, declared a 1.05 distribution for Q2, matching the Q1 payment but above the distribution last year. In Q1, their guidance was for a annual distribution of 4.20 in 2009 which implies keeping the quarterly payments at 1.05. Their Q2 guidance was favorable although they announced they are facing headwinds. But KMP reaffirmed they intend to pay a 4.20 distribution in 2009.

• Kinder Morgan Energy Partners First Quarter Distribution $1.05 Per Unit; 9 Percent Higher Than First Quarter 2008Business Wire(Wed 4:05pm)

It's nice to know there is some good news in the midst of all the dreary news coming out. Other REITs & MLPs may give gloomier reports & some may have to cut divs. But the 2 sectors are stronger than many give them credit for & offer extremely high yields.