Simon Property Group's High Dividend Really Is Too Good to Be True
The mall is dead these days, but that's not the only reason to worry about Simon Property Group's (NYSE: SPG) ability to keep its chunky payouts coming. With tenants buckling, shoppers migrating online, and the country in a recession, it's hard to bet on brick-and-mortar retail as we look out to the future.
Simon's stock has been cut in half this year, and it's not the only thing getting marked down. The giant mall operator slashed its quarterly dividend from $2.10 to $1.30 a share this year, and even that rate may be too high. The stock's 7.4% yield may seem tempting for income investors in this current climate, but we may not have seen the last of the dividend cuts.
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Source Fool.com
