Here's How Simon Property Group Can Afford Its 6.6% Dividend Yield
High dividend yields are popular with investors, but those investors need to keep in mind that they can sometimes be too good to be true. A company with a dividend yield that is out of step with its peers can be a good sign, but it can also be a sign that there is an increased risk of a dividend cut.
Still, when it comes to real estate investment trusts (REITs), they are known for having higher-than-average dividend yields. So, it takes a bit more investigation to determine how high is too high when it comes to REITs. Simon Property Group (NYSE: SPG) is a high-quality retail REIT currently sporting a 6.6% dividend yield. Is this yield too good to be true? Let's investigate.
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Source Fool.com