SPG is paying a 90 cent dividend, which is a sweet 3.02% dividend yield. SPG management has shown intelligence in the way they perform their business. They did not become the world's largest retail REIT by accident! The way the hierarchy of this company builds on it's success is calculated, intuitive and smart. Although they sometimes overpay for properties, they also bide their time to wait when the moment is right to make major decisions. SPG is America's largest mall operator. Their share price grew steadily and dependably from 2001 to 2007. It has been said that consumer discretionary markets were some of those hit hardest by the recession, however here we are again, watching as the share price has grown steadily. SPG was around $30.00 back in February 2009. Given that SPG is the largest United States company in its category, I believe that the share price will surpass its 2007 peak of just over $120.
Two notable pieces of SPG property are the King of Prussia Mall in King of Prussia, PA and the Philadelphia Premium Outlets in Limerick, PA. Both made a killing during last Christmas and are set to make more dinero this holiday season. Click here to find a mall or outlet near you.
REITS are just such a great investment for your Roth IRA stock portfolio. You must own a piece of at least one REIT to weather the storms of market fluctuation. Feel free to pick O, LTC, LRY, BDN, HCN, SNH or SPG, the list goes on and on. REITs are like finding a needle in a haystack. What is a REIT you may ask? A real estate investment trust is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors (DIVIDENDS!). The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.
In closing, as corny as this sounds, Simon says buy this stock now and hold for life. Especially if it goes down $10.00 or $15.00 from today's closing price of $119.14. Visit this website to learn more about Simon Property Group. SPG's Investor relations page can be view here. Feel free to watch the videos below to learn more about this stable and profitable dividend payer! Have a great remainder of the week.