Is This Ultra-High-Yield Dividend Stock in Trouble or a Screaming Buy?
Shares of Manhattan real estate giant SL Green Realty (NYSE: SLG) have plummeted more than 50% from their peak earlier this year. That has pushed the dividend yield for the real estate investment trust (REIT) up to an eye-popping 9.4%.
A dividend yield approaching double digits is usually a warning sign that the market doesn't believe the company can sustain its current payout much longer. Here's a look at what has investors spooked and whether SL Green can maintain its big-time dividend.
SL Green has faced several headwinds in recent years. As Manhattan's leading office landlord, it has encountered pressures from pandemic-related lockdowns in that city, which have given way to a rise in remote work. The company has battled against this latest headwind by enhancing the quality of its portfolio. It has sold older properties and reinvested the proceeds in improving the amenities of its remaining buildings to attract top tenants.
Source Fool.com
