Super Stock Blog

Let's make our own bull run!

Tag: WPG

REITs with BIG Dividend

By

On May 24, 2018

In Dividend Stock

CBL & Associates Properties Inc (CBL) and Washington Prime Group (WPG) are both mall REITs that pay a substantial dividend since their stock price has plummetted over the past year. As this time, WPG offers a 16.5% dividend while CBL is offering 18.45% dividend.  Both stocks were able to beat and surpass the earnings guidance for the past quarter.  This is the first time they have done it in the past couple years so their stock prices have appreciated in the past month.

Out of the two, CBL & Associates Properties Inc (CBL) is valued lower in the two because the CEO last year mentioned that they would need to cut the dividend which caused a big price drop.  Therefore, on a stock price basis, CBL is the cheaper of the bunch.  Both invest in malls throughout the United States and both carry substantial risk but if you feel the retail apocalypse is over then it should be a good time to pick either stock up.

Mall REITs still a Good Buy

By

On August 21, 2017

In Dividend Stock

As I mentioned in the previous post, mall REITs continue to be a good buy.  First it was JCPenney that had a bad quarter.  Then, Foot Locker also showed a bad quarter that also caused a drop in retail stocks and mall REITs.  WPG, Washington Prime Group, had plenty of cash flow to cover these retail shops revenue drop.  This includes paying the dividend to investors.  There is always the challenge in playing defensive in this space.  I believe playing defensive means making sure you have the cash flow to back up any investment that you take in.  This is especially true in this cycle in the stock market where things are all overvalued.  You want to find industries that are weak where there is an opportune time to purchase and that you know in the long-term will be valued correctly.

This is why Mall REITs are a good investment but the reason I recommend WPG is that it pays a strong dividend that is over 10%.  It also is a small mall REIT that are mostly based outdoors and have a strong diverse base of retail restaurants and shops that will be able to take on the downturn that some of the retail stores that will affect its sales.  It also is taking steps to transition stores like Sears, JcPenney, and Foot Locker to more stable tenants.  I believe the dividend will keep you protected in the long run as well.

Outside the mall REITs, Target had a good quarter recently.  It is a bigger player and a challenger to Amazon.  It isn’t without the risk but it does pay a nice 4% dividend.  Having been able to turn a nice quarter in a dismal retail quarter for most companies shows that Target is able to withstand the market issues and handle the situation.

I recommend investors look at both WPG and TGT for long-term buy and hold plays.  I do own both in a retirement account.

JCPenney Affecting Mall REITS

By

On August 11, 2017

In Other

JcPenney (JCP) had a huge drop this morning in stock price over 17% as of right now.  This was due to declines in profit and same-store sales.  Of course, this is having a huge affect on Mall REITs including one that we current invest in Washington Prime Group (WPG).

Washington Prime Group has a very small percentage of rent that comes from JcPenney. This amounts to less than 2% of the rent.  Again, Sears (SHLD) also is a renter of this mall reit but also accounts for less than 2% and most likely without further due diligence I believe sears is only accounting for 1% of the annual base rent that WPG receives on an annual basis.

For someone that has some retirement funds setup, this is a great time to get into Washington Prime Group and collect a massive dividend at over 10%.

For the fundamental trader, this is a great mall reit that should pay off handsomely in dividends and appreciation as there isn’t much more downside to mall reits.  We all know that Amazon (AMZN) wants in the retail space and purchased Whole Foods for billions of dollars.

For the technical trader, there is a bearish cross which means there is further downside.  I’m not too sure about this but it did break the support at $8.50 today so it is possible to get a better price by waiting it out.

Dividend Stock with over 10% Interest

By

On July 24, 2017

In Dividend Stock

Washington Prime Group (WPG) was once a dividend darling at 12% dividend.  It still sports a high dividend but that is expected to become lower as the price of the stock continues to appreciate.  This stock is an REIT that was hit hard when Macy’s couldn’t hit quarterly numbers including the numerous other mall stores that missed target as well.  These bad earning reports included store closures that affected REITs.  In May, Washington Prime Group hit an stock low below $7.50 which would have given you a nice 13% dividend.

Since May, this stock has had a steady appreciation with it recently going over $9.  Washington Prime Group is a unique REIT that caters to smaller retail plazas that are mostly in outdoor settings.  The Fairholme Fund run by billionaire Bruce Berkowitz invested millions in WPG recently.

For someone that has an IRA, 401k, and another tax-deferred stock account, this stock makes for a nice play.  As much as Amazon has taken so much market share in the retail space, Amazon (AMZN) has also proven that they need to be in brick-and-mortar when they announced that they are purchasing Whole Foods Market (WFM) for $13 billion.

There are other REITS in the similar mall industry that should continue to grow as the fallout disappears and investors see the true value of these mall REITs.  This stock should be a part of an investors’ portfolio for long-term growth in dividend and appreciation.

I plan to purchase shares in any dips in price but I do not own any at this time.

Contact

If you would like to contact us, please email webmaster at superstockblog dot com.

Recommended Reading

Categories

Meta

Archives