Dividend-News

Daily dividend news for investors in dividend stocks


Washington Prime Group: Why A Dividend Cut Is Very Likely

Published Tue, 16 Jul 2019 07:45:00 -0400 on Seeking Alpha

Co-produced with Samuel Smith
Despite Washington Prime Group (WPG) trading at a steep discount to net asset value today and offering investors a mouth-watering dividend yield of 27%, we remain on the sidelines for two reasons:
(1) We believe there are other opportunities that offer a better risk-reward proposition in the beaten-down retail REIT sector. (2) The combined uncertain macroeconomic outlook, retail sector headwinds, and strained cash flow situation at WPG will likely lead to a dividend cut in the near term In the remainder of this article, we will discuss our conviction for the second reason we are staying away from WPG common shares for now.

source
Uncertain Macroeconomic Outlook
There have been numerous projections by the Federal Reserve and numerous other well-respected economists and businessmen that economic growth is likely to slow over the next several years, with some even calling for a recession to hit sometime in the next 6-18 months. While all of the major economic indicators such as the unemployment rate and GDP growth continue to signal a solid economy, there are numerous warning signs that a significant slowdown and/or recession may indeed be just around the corner. These reasons are, in our view, what has caused the Federal Reserve to reverse its strategy of raising interest rates toward a more “wait and see” – if not outright rate cutting – approach:
(1) Trading Partner Slowdowns: Data from major economies across the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
JC PENNEY 1.11   0.0 -0.87 0.00 64.00
CBL & ASSOCIATES PROPERTIES 1.38   0.0 -0.95 0.35 27.34
MACY'S 17.00   5.2 3.29 1.51 8.83
AMAZON.COM 1843.55   76.5 24.10 0.00 0.00

JC PENNEY - JCP
JC PENNEY - JCP  


Older articles featuring Jc Penney (JCP):
Kohl's: Flat Top Line And Declining Margins Mean Risk To The Dividend
Macy's Doesn't Need A Dividend Cut
CBL's Dividend Suspension Confirms That Washington Prime Is A Strong Sell
Macerich: This High-Yield REIT Will Return To Growth, If Not In 2020
Falling Yields Aren't A Harbinger Of Doom
Deep Value And 18.5% Yield From Washington Prime
Why Target Corporation Remains a Top Contrarian Dividend Play
Pennsylvania REIT: Is Its 11.4%-Yielding Dividend A Buy?
Dividends 2019: Resolve To Restrain Expectations And Scrutinize Risk
Kohl's Corporation: Dividend Stock Analysis

More