SKT and FDO Will Continue Higher

After we learned on Friday that unemployment has not really turned around yet, we need to look for companies that will prosper in a weaker economy.  Tanger (SKT) and Family Dollar (FDO) are two names that come to mind, and both happen to be at 52 week highs.

Tanger Factory Outlet Centers (SKT)- The company is a fully-integrated, self-administered and self-managed real estate investment trust, which focuses on developing, acquiring, owning, operating and managing outlet shopping centers.  SKT had good Q2 results and has raised their dividend 17 consecutive years.  The company will continue to do well because consumers still want name brand items, but they cannot afford the name brand prices.  This is when outlets thrive.  Outlet are a way for companies to get rid of excess inventory, at very reduced prices.

Family Dollar (FDO)- The company operates a chain of more than 6,600 general merchandise retail discount stores in 44 states, providing consumers with a selection of merchandise in neighborhood stores. The Company’s merchandise assortment includes consumables, home products, apparel and accessories, and seasonal and electronics.  Out of all the dollar stores I think this is the 'best of breed'.  FDO recently announced Q3 earnings of $0.77/share compared with $0.62/share just one year ago.  Family Dollar is taking all the right steps to continue this great growth.  Although the dividend is small, FDO did raise it 15% this year, which is also a very positive sign.

Company	Symbol	Stock Price	52 Week Range
Tanger	SKT	45.27	33.79-46.51
Family Dollar	FDO	42.00	25.52-42.49