Shopping Mall Giant Attracts Buyers As Company Raises Guidance, Dividend

Simon Property Group (SPG) is a top choice for dividend stock investors. As the largest shopping-center real estate investment trust in the world and a member of the S&P 100, Simon Property leases out over 220 properties globally.

X

A surprisingly robust economy and strong U.S. consumer spending have led to significant gains for Simon Property. The dividend stock is up more than 40% over the past 52 weeks. This increase in capitalization is in addition to a strong annualized dividend yield of 5.4%.

The strength marks a dramatic recovery from the outset of the Covid-19 pandemic, which saw the REIT’s share prices plummet. The company slashed its dividend as shopping centers quickly became ghost towns.

Dividend Stock Payout Rises Again

Since the cut, Simon Property’s dividend has almost fully recovered, with the company recently raising its dividend for the second consecutive quarter. Simon Property’s next dividend of $2 per share has an ex-dividend date of June 5.

First-quarter results saw Simon Property’s occupancy rate at an impressive 95.5%, up 1.1% from a year prior. As consumers continue to spend, Simon Property also raised its 2024 guidance. The company now estimates net income per share of $7.38 to $7.53 and funds from operation of $12.75 to $12.90 per share for the full year.

Despite the discretionary nature of Simon Property’s tenants, the company is considered a low-risk stock.

While a recession would harm the company, risks remain limited due to Simon Property’s exceptional balance sheet and debt rated at A- by S&P Global. This strong credit rating is particularly beneficial because the company will need to refinance at least some of its $1.16 billion in debt coming due next year.

For conservative investors looking to generate income while betting on the economy remaining buoyant, Simon Property Group is a top dividend stock to consider.

Shares of Simon Property are forming a flat base with a 157.82 buy point, per MarketSurge pattern recognition. The dividend stock currently ranks fifth out of 161 stocks in IBD’s Finance-Property REIT industry group.

YOU MAY ALSO LIKE:

AI Investing And 4 More Predictions For The Next Decade

IBD Live: Learn And Analyze Growth Stocks With The Pros

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest