Washington Prime Group (WPG) was once a dividend darling at 12% dividend. It still sports a high dividend but that is expected to become lower as the price of the stock continues to appreciate. This stock is an REIT that was hit hard when Macy’s couldn’t hit quarterly numbers including the numerous other mall stores that missed target as well. These bad earning reports included store closures that affected REITs. In May, Washington Prime Group hit an stock low below $7.50 which would have given you a nice 13% dividend.
Since May, this stock has had a steady appreciation with it recently going over $9. Washington Prime Group is a unique REIT that caters to smaller retail plazas that are mostly in outdoor settings. The Fairholme Fund run by billionaire Bruce Berkowitz invested millions in WPG recently.
For someone that has an IRA, 401k, and another tax-deferred stock account, this stock makes for a nice play. As much as Amazon has taken so much market share in the retail space, Amazon (AMZN) has also proven that they need to be in brick-and-mortar when they announced that they are purchasing Whole Foods Market (WFM) for $13 billion.
There are other REITS in the similar mall industry that should continue to grow as the fallout disappears and investors see the true value of these mall REITs. This stock should be a part of an investors’ portfolio for long-term growth in dividend and appreciation.
I plan to purchase shares in any dips in price but I do not own any at this time.