Tag Archives: NYSE:SPG

Dividend Yield Explained Simply: What’s a Good Dividend Yield?

If you’re new to dividend stock investing, you’d want to wrap your head around what a good dividend yield is. In this video, I’ll use real-world examples, including Johnson & Johnson (NYSE:JNJ), Apple (NASDAQ:AAPL), General Electric (NYSE:GE), and Simon Property Group (NYSE:SPG).

Overview

Graphic showing that dividend income can be used for vacations, retirement, and paying for bills and mortgage.

You’re probably interested in investing in dividend stocks if you’re here to learn about dividend yields and want to know what a good dividend yield is.

I’ll first explain what a dividend yield is, and what affects it. Then, I’ll follow with a super simple example as well as real-life examples, introducing some safe dividend stocks and their dividend yields.

Second, I’ll explain the difference between dividend yield and yield on cost and why they’re relevant to investors. 

Third, I’ll give examples on what makes a good dividend yield, as you may be wondering if, say, a 5% yield is better than a 2% yield. I can tell you right off that that it’s not always the case. 

Finally, I’ll recap the key takeaways at the end.

Read More

3 Top Dividend Stocks For February 2020

Summary

  • Restaurant Brands, Nutrien, and Simon Property are undervalued.
  • They offer decent yields of about 3-6% and long-term total returns potential that’d beat the market.
  • Returns will come from dividends, growing profitability, and valuation expansion over the long run.

Are you looking for dividend stocks to generate some nice passive income and market-beating long-term returns? Let’s get some insight from Peter Lynch. 

Are you looking for dividend stocks to generate some nice passive income and market-beating long-term returns? Let’s get some insight from Peter Lynch. 

He’s the incredible mutual fund manager who returned about 29% per year for his investors between 1977 and 1990 — essentially, transforming a $10,000 investment into about $280,000 over 13 years.

Source: Author

Lynch is also the author of The New York Times bestseller, One Up on Wall Street.

One of his famous quotes is

Invest in what you know.

So, what do we know? We come into contact with many companies every day. For example, in the past week, you might have gotten a quick bite at Burger King, Tim Hortons, or Popeyes Louisiana Kitchen and notice that the quick-service restaurant was buzzing with people.

This triggers you to do more research and realize that these franchises are actually all under the same company, Restaurant Brands (TSX:QSR)(NYSE:QSR).

Read More

Strong Dividend Stocks in the Retail Space Exists?!

If you’ve been following Sears Holdings Corp. (NASDAQ:SHLD) and Macy’s Inc.’s (NYSE:M), it may be difficult to believe that strong companies in the retail space still exist.

Sears had been posting losses since 2012. And Macy’s fundamentals have been deteriorating since 2015; its long-term growth is estimated to be about 2% per year, which would be hardly keeping pace with inflation. One should, of course, avoid investing in these types of retailers.

However, it’s not all bad in the retail space. Here are a few quality stocks whose fundamentals have remained strong as they face the challenges in the industry.

shopping mall

Simon Property Offers a ~4.4% Yield

Simon Property Group Inc. (NYSE:SPG) is a global leader, which owns premier shopping, dining, entertainment and mixed-use destinations with properties across North America, Europe, and Asia.

In the second quarter, Simon Property slightly increased its guidance for the year (due to the elimination of some debt), and now estimates to generate $11.14 to $11.22 funds from operations per share, which would represent a growth of ~7% compared to 2016.

As well, management also increased its quarterly dividend to $1.80 per share, which represents a boost of nearly 9.1% from a year ago. Simon Property has hiked its dividend payout every year since 2011.

At ~$164.50 per share, Simon Property is reasonably priced at a multiple of ~15 (and some say even undervalued because the quality shares have historically commanded a premium multiple of ~18). Here the best three places to look for safe dividend income.

Read More