I open a new position to my portfolio with the purchase of Simon Property Group (SPG)
16 shares @ $153.90 on 11/04/2019.
This increases my forward 12-month dividend income by $134.40 to a total of $9,766.12. I also updated my portfolio page to reflect the change.
Ellery this month I bought more shares of Simon Property Group. I bought SPG on the 2nd of October. The stock price went up a little since then, but the company is undervalued and high quality.
Like I mentioned in that post, this is the 5th REIT that I own, and I have been very happy with three of the four thus far. SKT is in the negative but it is still extremely undervalued. However, I do plan to add one more of SKT stock soon. Maybe just one lot buy.
Simon Property Group currently has a dividend payout ratio of 70%. This has been about the average for the past 5-years.
Another metric to look at is the company 5-year dividend yield average of 3.7%. Currently, the company has a dividend yield of 5.60%. This is over 190 basis points vs its 5-year average.
With all that said, I find SPG to be undervalued, and I recommend it as a BUY at this time. I have a fair value price of $181.32. This means that SPG is 23.17% undervalued based on today’s price of $147.11 (11/21/2019).
What do you think about the company? Plan on owning it or already do? or why not?
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