Simon Property Group, Inc. - SPG

Simon Property Group, Inc., stock ticker SPG, is an elite real estate property company. Simon owns or has an interest in 392 retail real estate properties, including regional malls, Premium Outlets, The Mills, community/lifestyle centers and international properties comprising 263 million square feet of gross leasable area in North America, Europe and Asia. SPG is headquartered in Indianapolis, Indiana.

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.

Compass Minerals International, Inc. - CMP

Compass Minerals International, Inc., stock ticker CMP, currently pays a 45 cent quarterly dividend, which is a 2.59% dividend yield. You should not think that each and every dividend payer with a yield over 2% is worth your time, however CMP is. As stated on their website, "It’s not what you might expect from a mineral company. But as a leading producer of salt, sulfate of potash and magnesium chloride, we touch the lives of millions of people every day. Keeping roads safe. Improving water quality. Growing nutritious fruits and vegetables."  CMP's history stretches back as far as 1844. They became a public company following its initial public offering in December 2003.

In short, CMP and its consolidated subsidiaries is a producer of minerals, including salt, sulfate of potash specialty fertilizer (SOP) and magnesium chloride. As of December 31, 2010, Compass Minerals operated 11 production and packaging facilities, including a rock salt mine in Goderich, Ontario and Canada, and a salt mine in the United Kingdom in Winsford, Cheshire. Its solar evaporation facility located in Ogden, Utah, is a solar salt production site in North America. It provides highway deicing salt to customers in North America and the United Kingdom and specialty fertilizer to growers and fertilizer distributors worldwide. It has two segments: salt and specialty fertilizer. In January 2011, Compass Minerals acquired Big Quill Resources, Inc., Canada’s SOP producer.

CMP is a fairly easy business to understand and are a hidden gem in the market. They are a long-term small cap investment with a healthy dividend. You can't go wrong with salt and fertilizer. I like this company because their salt sales have a low cost per ton, there is minimal foreign competition and the market tends to be low competition due to geographical constraints. CMP is less dependent on the overall economy as well as the majority of sales are to the highway deicing market which is driven by weather conditions. The consumer segment is also relatively large and is very stable in nature helping stabilize profitability. The portions of the business geared toward chemicals and specialty plant nutrients is a business with significant price fluctuations, but appears to have the potential for growth and may gain pricing power due to supply constraints. I believe the current pricing represents a great value for a long term investor and should outperform the S&P over time.

This company is diversified due to their summer (Fertilizer) and winter (Salt) businesses, it is centrally located for easy shipping to much of the pertinent parts of the nation, and it has a management staff that knows the value of their diversification. Please feel free to visit Compass Minerals International's website, here, as well as their Investor Relations site, here. Also, check out the videos below. Have a great week!

Update: Stock Picks for the week of 11/21/11 to 11/25/11

It was a horrible week for all 14 stock selections for the week of 11/21/11 to 11/25/11. All selected stocks decreased in value, with a total loss of $26.37, due in large part to the Dow and S&P logging their worst Thanksgiving week since 1932! Now is the time to buy though. Each stock's dividend yield has increased and are selling at a discount. They are historical high yielders and profitable, mainstay companies. I am not trying to hide the fact that last week was rough and if you purchased these stock at the beginning of last week you lost a pretty penny, however selling when the market is down is not the best idea. If you have any free cash on hand I suggest buying HE, DOW, HD, and ADP.

The CBOE Volatility Index, which is considered the best gauge of fear in the market, ended above 34. Among key S&P sectors, consumer staples and utilities led the gainers, while energy and techs lagged. The market is down, but not out. In my opinion, there has been a tremendous buying opportunity these past couple of weeks.

In closing, always invest in high yielding dividend paying stocks. Hold on to your stocks for the long term so dividends have plenty of time to compound. Feel free to watch the videos below about HD and DOW. In a down market they will provide stability within your Roth IRA. Until next time, reinvest those dividends and have a great remainder of the weekend! Spend within your means.


Net Gain/Loss  -$26.37
Stock Ticker    Quote @ 11/5/11   Quote @ 11/12/11
Hawaiian Electric Industries, Inc.  (Public, NYSE:HE) $25.64  $24.25

-$1.39
Pepco Holdings, Inc.  (Public, NYSE:POM) $19.43 $18.71
-$0.72
UIL Holdings Corporation  (Public, NYSE:UIL) $33.71  $32.25
-$1.46
Harley-Davidson, Inc.  (Public, NYSE:HOG) $36.34  $34.80
-$1.54
The Dow Chemical Company  (Public, NYSE:DOW) $25.95  $24.47
-$1.48
Quest Diagnostics Incorporated  (Public, NYSE:DGX) $55.14  $54.43
-$0.71
Prudential Financial, Inc.  (Public, NYSE:PRU)  $48.53  $44.91
-$3.62
The Home Depot, Inc.  (Public, NYSE:HD) $37.88  $36.47
-$1.41
Automatic Data Processing  (Public, NASDAQ:ADP) $49.89  $47.93
-$1.96
Snap-on Incorporated  (Public, NYSE:SNA) $52.15  $48.05
-$4.10
Prospect Capital Corporation  (Public, NASDAQ:PSEC) $9.36  $8.95
-$0.41
RadioShack Corporation  (Public, NYSE:RSH) $12.06  $10.66
-$1.40
Starwood Hotels & Resorts Worldwide, Inc  (Public, NYSE:HOT) $49.08  $43.41
-$5.67
NV Energy, Inc.  (Public, NYSE:NVE) $15.01  $14.51
-$0.50

The Gap Inc. - GPS

The Gap Inc., stock ticker GPS, is a leading global specialty retailer with a strong portfolio of brands and fiscal 2010 revenues of $14.66 billion! Gap, Inc. was founded in 1969, with a single store in San Francisco, CA. Today, they own and operate 3,200 store worldwide. They are continuing to grow in the United States and internationally. They are committed to serving the needs of their customers while delivering quality earnings and long term value to their shareholders. GPS pays a 12 cent quarterly dividend per share, which is currently a 2.53% dividend yield. Their products include clothing apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. Most of the products sold under their brand names are designed by the company and manufactured by independent sources. GPS operates in two segments: Stores, which includes the results of the retail stores for Gap, Old Navy, and Banana Republic, and Direct, which includes the results for its online brands, both domestic and international. GPS has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in many other countries around the world.

On September 8th, 2011 GPS opened their first Banana Republic store in Russia. Also, they have plans to close over 100 stores by the end of 2013. Wait, what? You may ask, How can that be a good thing? Well, watch the video below. They are just trying to reduce the square footage across all of their brands. On November 17th, 2011 GPS announced that its Board of Directors approved a new $500 million share repurchase program. Since January 1st, 2011 GPS has repurchased about 107 million shares for $2 billion, which is proof that they are committed to returning cash to their shareholders. When a company repurchases their stock it is a great sign that they believe in their brands/products.

I am not trying to pump this stock and make it something that it is not, but I do strongly believe in the Old Navy and Banana Republic brands. GAP is a winner regardless of whether it is out of style. Every Old Navy I've ever been to has been packed. Whether in PA, DE, NJ, CA, NYC or even in Washington DC, their clothes are economical and stylish. Gap Inc. is a diversified company with brands which hit each consumer's price points and fashion needs. Just wait until they conjure up a new brand which will send shock waves across the clothing apparel industry. They have the cash on hand to do just that.

During the past few years I have heard a handful of negative comments about Gap, Inc, however I don't believe it. Analysts can hate all they want on GPS, they just don't know how loyal their customers are. (I may sound like one of them, but honestly I'm more of a fan solely based on their dividend yield and share buybacks!) Yes, they may not make as much money as they used to, yet I believe in them. They sell clothing! Isn't that a necessity? Much like Waste Management, who picks up our trash, or Exelon, Duke Energy, AEP, HE etc., who provide us with electricity. These types of companies provide the world with things that we need versus what we want. It is true that one can go to another clothing retailer than Gap Inc.'s stores, but this company isn't going anywhere.

GPS is selling much too low at $17.30. Their cash flow is too impressive for that stock valuation. Currently, they are a market leader, however as the economy picks up each quarter will become more and more profitable. GPS continues to cut costs and we should begin to see a dividend increase. While reviewing GPS's financials over the past 12 months I have noticed that they are learning from their mistakes, taking steps to correct them, and expanding online and internationally. If you ask me, GPS is a rising star with good insider holding. Their balance sheet is exceptional and with the previously mentioned share repurchasing their stock price will go up, up, up.

Feel free to visit The Gap Inc.'s homepage, here, as well as their Investor Relations page, here. Also, watch the videos below. They are entertaining and provide a glipse into the company's culture. Until next time, reinvest those dividends within a Roth IRA. It's your best bet!