SPG - Leverage Is a Lead Weight On This High-Yielder's Recovery
2023-06-02 05:41:00 ET
Dividend investors looking to invest in a high-yield stock that owns great assets will likely find mall landlord Macerich (NYSE: MAC) of interest, given its large 7.2% dividend yield. But there's more to the story here. Competitors have a leg up on this real estate investment trust (REIT) when it comes to balance sheet strength, and that has been, and could remain, a very important difference.
Malls like the ones that Macerich owns were shut down during the early days of the coronavirus pandemic. It was a huge blow to the REIT's business and that of its closest peers, like Tanger Factory Outlets (NYSE: SKT) and Simon Property Group (NYSE: SPG) . All three ended up either reducing or temporarily eliminating their dividends. But, now that the world has begun to learn how to live with the coronavirus, malls are up and running again and shoppers have returned.
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Leverage Is a Lead Weight On This High-Yielder's Recovery