LONDON, UK / ACCESSWIRE / November 14, 2017 / Pro-Trader Daily takes a closer look at Simon Property Group, Inc. (NYSE: SPG) as the Company's stock will begin trading ex-dividend on November 15, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on November 14, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:

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Dividend Declared

On October 27, 2017, Simon Property's Board of Directors declared a quarterly common stock dividend of $1.85 per share, which is a 12.1% increase on a y-o-y basis. The dividend will be payable on November 30, 2017, to stockholders of record on November 16, 2017.

Simon Property's indicated dividend represents a yield of 4.52%, which is substantially above the average dividend yield of 3.71% for the financial sector. The Company has raised dividend for seven consecutive years.

Dividend Insights

Simon Property has a dividend payout ratio of 66.0% which indicates that the Company distributes approximately $0.66 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to analysts' estimates, Simon Property is forecasted to report earnings of $6.84 for the next year compared to the Company's annualized dividend of $7.40. One of the primary reasons for the difference between earnings and annualized dividend is that Simon Property is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.

Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, for the third quarter 2017 results announced on October 27, 2017, Simon generated net income attributable to common stockholders of $513.8 million, or $1.65 per diluted share, compared to $504.7 million, or $1.61 per diluted share, in Q3 2016. On the other hand, the Company's FFO was $1.04 billion, or $2.89 per diluted share, compared to $976.0 million, or $2.70 per diluted share, in the prior year's same period. The FFO indicates that the Company should be able to comfortably cover its dividend payout.

As of September 30, 2017, Simon Property had more than $6.5 billion of liquidity consisting of cash on hand, including its share of joint venture cash and available capacity under its revolving credit facilities. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.

Recent Development for Simon

On November 10, 2017, Simon Property announced that Stefan M. Selig has been appointed to its Board of Directors. Mr. Selig is a highly accomplished banker and senior executive who has served in prominent leadership roles in both the private and public sectors.

In addition to serving on Simon Property's Board, Mr. Selig is the founder of BridgePark Advisors LLC and serves as the Lead Independent Director of the Board of Directors for Safety, Income & Growth Inc. Mr. Selig served as Undersecretary of Commerce for International Trade for the US Department of Commerce from June 2014 to June 2016. He is a member of the Council on Foreign Relations and the Committee for Economic Development (CED).

Stock Performance

On Monday, November 13, 2017, the stock closed the trading session at $160.31, slipping 2.10% from its previous closing price of $163.75. A total volume of 2.95 million shares have exchanged hands, which was higher than the 3-month average volume of 1.58 million shares. Simon Property's stock price advanced 1.79% in the last three months and 4.01% in the past six months. The stock is trading at a PE ratio of 28.31 and has a dividend yield of 4.49%. At Monday's closing price, the stock's net capitalization stands at $50.51 billion.

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