57.59 -0.11 (-0.19%)
Pre-market: 8:49AM EDT
|Bid||57.85 x 2900|
|Ask||58.00 x 1100|
|Day's range||56.36 - 59.38|
|52-week range||42.25 - 168.52|
|Beta (5Y monthly)||1.40|
|PE ratio (TTM)||8.93|
|Earnings date||29 Jul 2020 - 03 Aug 2020|
|Forward dividend & yield||8.40 (14.56%)|
|Ex-dividend date||13 Feb 2020|
|1y target est||95.07|
One of the most important lessons of dividend investing is: If the yield looks too good to be true, it probably is. The coronavirus pandemic has driven up dividend yields as it's crushed stock prices, but with companies' earnings forecasts thrown into disarray, the same guideline applies -- a high yield is more likely to be a mirage than an opportunity. Annaly Capital Management (NYSE: NLY) is one of the premier mortgage real estate investment trusts (REITs).
With that in mind, here's why I bought U.S. Bancorp (NYSE: USB), Planet 13 Holdings (OTC: PLNH.F), and Simon Property Group (NYSE: SPG) in recent weeks as the pandemic continues. At the start of 2020, the stock traded for roughly double its book value, which is actually par for the course for U.S. Bancorp.
Shares of mall-focused real estate investment trust Simon Property Group (NYSE: SPG) rose as much as 12% in the first half hour of the trading day on May 18. Following closely behind was Macerich (NYSE: MAC), which was up 11%, and factory outlet specialist Tanger Factory Outlet Centers (NYSE: SKT). Trailing a little behind this trio was Pennsylvania REIT (NYSE: PEI), which was up in the high single digits.
Tanger and Simon are struggling through a difficult period for malls, but Simon looks better positioned for the long term
Simon Property Group (NYSE: SPG) told analysts it planned to open half of its shopping malls this week. Last month, it was reported last month that Simon intended to begin reopening almost 50 malls the first week of May as states permitted. CEO David Simon said, "we are now leading the effort for these local economies to get back to business while delivering a new elevated standard of safety for all."
Simon Property's (SPG) Q1 results reflect the adverse impact of the coronavirus pandemic and the resultant temporary closure of its U.S. retail properties.
BMO Capital analyst Jeremy Metz maintained a Hold rating on Simon Property on Tuesday, setting a price target of $65, which is approximately 12.03% above the present share price of $58.02.
Simon Property (SPG) delivered FFO and revenue surprises of -4.14% and -2.68%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
The stock market ended the week on a positive note, with the Dow Jones Industrial Average and S&P 500 up by 1.5% and 1.4%, respectively, as of 3 p.m. EDT. Mall operator Macerich (NYSE: MAC) was a particular standout, with the retail REIT's shares up by nearly 11%. This is especially true with outdoor (open-air) shopping centers.
While Simon Property's (SPG) Q1 results will likely reflect benefits of active portfolio restructuring and its omni-channel strategy, the choppy retail environment concerns us.
Warren Buffett talked about the changing retail and commercial real estate business at Berkshire Hathaway's annual meeting with shareholders.
Shares of jewelry-store operator Signet Jewelers (NYSE: SIG) were up for the third-consecutive session on Wednesday, as investors continued to cheer news that Simon Property Group (NYSE: SPG) will begin reopening its malls on Friday. Signet Jewelers' stock finished the day at $10.16, up 7.9% from Tuesday's closing price and up about 33.5% since the end of last week. Here's why Signet's stock has surged this week: Simon Property Group said on Monday that it will reopen 49 of its U.S. malls and outlet centers between May 1 and May 4, this Friday through Monday.
Investors clearly think the future looks brighter for mall owners than it did just a short while ago. But does it really?
It will offer free temperature checks for customers via infrared thermometers, though it won't require customers to submit to a temperature reading before entry. With states like Colorado, Georgia, South Carolina, and Tennessee beginning to reopen for business, Simon Property Group intends to open its malls beginning May first and continuing through May 4 depending upon state and local stay-at-home orders. Simon operates over 230 malls in the North America, Asia, and Europe.