I open a new position to my portfolio with the purchase of Simon Property Group (SPG)
10 shares @ $149.59 on 10/2/2019.
This increases my forward 12-month dividend income by $82.00 to a total of $9,429.52. I also updated my portfolio page to reflect the change.
This is the 5th REIT that I currently have in my portfolio. I do plan to add more to this one as I find it to be a high quality undervalued REIT. The company has been increasing its dividend for 9 straight years. SPG has a 5-year dividend growth rate of 12.56%. The most recent increase was 2.4% in July. The company has a history of increasing its dividend every 2 quarters.
Also, the 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 5.47%. This is over 150 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 18.7% undervalued based on today’s price of $152.79 (10/21/2019).
What do you think about the company? Plan on owning it or already do? or why not?
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