New SA Post: GGP REIT Review

Another post has been made by yours truly on Seeking Alpha. This time I chose to review a competitor of my last review. In this article, I review General Growth Properties (GGP).

General Growth Properties (GGP) is another retail REIT that could potentially represent a future investment. They are a much smaller scale operation than Simon Property Group Inc. but with the smaller scale can come a price advantage when buying into it.

The stock unfortunately offers a smaller yield than the REIT that I last reviewed but remember that diversification is the name of the game if you don't want to get stung.

If you don't want to read the full article, understand the General Growth Properties offers a solid purchase idea if you are looking for a retail REIT with a much smaller NAV ratio than Simon Property Group Inc. (SPG). As the yield is lower than SPG however, it would be important that the investor who chooses to add GGP to their portfolio would probably best find it used in a tax differed portfolio as the tax advantages would be well used with a yield as small as SPG offers at current rates. Full article linked below:

Purchase General Growth Properties: Solid Retail REIT

New SA Post: SPG REIT Review

I have made another post recently on Seeking Alpha. As it is an exclusive article published through their site, I will simply leave a link below.

This time I have chosen to write a full review of Simon Property Group Inc (SPG). The RIET is intriguing and my review goes into good detail of the entire business as whole. I go over their price, yield, net asset value, funds from operations, and of course debt to equity ratio.

If you have ever been interested in owning a piece of a retail REIT, it may be good to become aware of Simon Property Group Inc (SPG) as it is one of if not the biggest of them out there. This does of course come with a premium price but the stock still does boast some good FFO. Full review at the link below:

Simon Property Group Inc.: Cautious Buy

REIT: How to Evaluate Them

REITs are typically seen as the dividend cash cows for a portfolio much in the same way the golden snitch is seen as a win for Harry Potter in a quidditch game. These massive dividend payers are a dime a dozen however and their metrics seem to be all over the place. Why, you might ask? This is because of a number of factors.

The most important factor is that an REIT (Real Estate Investment Trust) is a unique type of investment that is forced by law to pay out 90% of their income received as dividend payments to shareholders. This causes your typical method of evaluation to fail. This is because the P/E ratio and subsequently most other common ratios become affected by the fact that the net income is slashed due to those dividend payments. How then can we tell if the REIT in question is worth our investment?

Recent Buys: ABBV, STAG

I've said it before and I'll say it again; I love the smell of purchases in the morning. This morning I woke up and after finalizing my budget for March I was able to move a good amount into the investing account. This allowed me to quickly grab a few stocks that I've been looking at for some time now. These two stocks were ABBV and STAG. The purchases are as follows:

New Purchases:

ABBV - 10 shares - $586.90 - 3.90% annual dividend 

STAG - 15 shares - $300.90 - 7.02% annual dividend 

With both of these being added to the portfolio, the portfolio gains an additional (potential) $43.60 in annual dividend income. This gives it a huge boost in payouts for the year as I race towards crushing last years dividend payouts. As this is very important to keep my eyes on, I've also gone back and compiled the monthly payouts for 2015 so that I can better understand not just the YOY growth of the totals throughout the year but also through the month. That is as follows:

As you can see, I've already crushed January, February, and March's last year payouts. I hope that this trend can continue into the rest of 2016. The only threat to that would be if a cut was presented that would severely limit a payout for any of the next few months. As I don't see that sort of thing coming and I doubt that most people can, I won't bother thinking about it too much. I will simply plan to keep my eyes forward towards the future and hope that these picks further bolster a well run portfolio of dividend paying stocks. 

Thanks for following and if you have any feedback, please leave your comments below. I would love to hear from any of my readers, most importantly on such updates as new acquisitions.