No. of Recommendations: 5
More to follow, but I posted a tremendous amount on my TMF board about SPG during 2020 covid collapse.
Net is that I didnt trust the nonsensical hypergrowth valuations of Zoom and others, which was my loss thru at least mid-2021, but eventually I was proven correct in thinking those bubbles would pop. Most Saul stocks (then) still below 2021 highs today, for example.
Instead I looked for beaten down value and saw SPG as a well managed higher-end “mall” company w a fortess balance sheet and one of best CEOs around in David Simon.
I rode SPG from the $60s in mid 2020 to about $165-170 when I sold at end of 2021.
The stock had a nice dip in 2022 to around $90 and has been sitting around $150 for a while now.
Divvys were suspended when covid forces mall closures, but a few Qs later they turned them back on and have been raising them every Q since.
So you have a strong dividend and a resilient business (and stock) that has seen massive bestdowns in GFC and Covid along with sizable 2022 dip and each time it recovers.
Barring retirement of David Simon, I am confident if SPG falls in a coming recession/market correction, that it will be yet another great opportunity to pounce.
Targets; $110, $100, $90.
If they manage not to cut dividends in a downturn, their yield could be 8-9% or more at those prices, too.
Dreamer
