Dividends4Life: Buy SPG for the Dividend Growth, Not the Value

Buy SPG for the Dividend Growth, Not the Value

Posted by D4L | Sunday, January 18, 2015 | | 0 comments »

Simon Property Group Inc (SPG) has plenty of things for investors to like. SPG has a nice pipeline of new and expansion projects underway, and overall rents are rising, as demonstrated in last quarter’s earnings. And with the spinoff of SPG’s lower growth and physically smaller assets to Washington Prime Group (WPB), SPG will better be able to focus on owning and growing premium retail outlets in the U.S .and the rest of the world.

The Washington Prime Group spinoff also released a significant amount of mortgage debt, leaving a cleaner balance sheet and the ability to funnel a greater share of earnings back into higher growth properties or take on new debt to accomplish the same goal. SPG is a good play for investors looking for dividend growth, but I would not count on significant price appreciation given its current valuation.

Source: InvestorPlace

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