Only 3 Days Left To Simon Property Group Inc (NYSE:SPG)’s Ex-Dividend Date, Is It Worth Buying?
On the 28 February 2018, Simon Property Group Inc (NYSE:SPG) will be paying shareholders an upcoming dividend amount of $1.95 per share. However, investors must have bought the company’s stock before 13 February 2018 in order to qualify for the payment. That means you have only 3 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Simon Property Group’s latest financial data to analyse its dividend attributes. Check out our latest analysis for Simon Property Group
5 checks you should use to assess a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is its annual yield among the top 25% of dividend-paying companies?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has it increased its dividend per share amount over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will it have the ability to keep paying its dividends going forward?
How well does Simon Property Group fit our criteria?
REITs are a special-case dividend payer. This is because a high percentage of their earnings are required to be paid out as dividends. Simon Property Group has a trailing twelve-month payout ratio of 114.54%, meaning that a portion of dividend payments are funded by retained earnings. Going forward, analysts expect SPG’s payout to remain around the same level at 114.99% of its earnings, which leads to a dividend yield of 5.33%. Furthermore, EPS should increase to $6.56. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, Simon Property Group produces a yield of 5.13%, which is high for REITs stocks.
Next Steps:
Whilst there are few things you may like about Simon Property Group from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three essential aspects you should look at:
1. Future Outlook: What are well-informed industry analysts predicting for SPG’s future growth? Take a look at our free research report of analyst consensus for SPG’s outlook.
2. Valuation: What is SPG worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether SPG is currently mispriced by the market.
3. Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
