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Don't Let The Dividend Safety/Growth Blind You

Published Wed, 25 Mar 2020 15:47:21 -0400 on Seeking Alpha

The lesson that many investors adopted following the GFC was to focus on income and (almost) care less about price appreciation.
We always claimed that total return is the only true way that may be used. Any other way is a voluntary self-deception.
For almost 11 years, the DGI style has made miracles, causing investors to be blinded to the most basic aspects aspects of investing.
And then, Covid-19 showed up, and the rest is already (a painful) history.
Many investors have adopted the Dividend Growth Investing ("DGI") style, especially since the Global Financial Crisis ("GFC") that shaken many old-previous beliefs.
Thing is, when you are mostly (let alone entirely) focused on the dividend, you sometimes miss out on bigger trends. Things that are happening on the macro level (affecting the entire business case) stage and can't/don't be seen on the micro level (the dividend keeps getting increased so everything is, allegedly, cool).
Two and a half years ago, I've published an article titled "The Stunning Story Of Retail eREITs And Why Total Return Matters Even For Dividend Growth Investors", that concludes with the following statement:
Even DGIs should bear in mind that dividend growth investing is not about "Dividend Safety vs. Total Return" rather "Dividend Safety & Total Return". The former must be escorted by the latter!
Almost 21 months later, on July 22, 2019, I've published the second part, ending with the following statement:
Even if your journey starts with the dividend, it mustn't end there!
Knowing my crowd, I trust that there will be at least one reader who will post (or at least think) something along the lines of "Well, of course. Now, with the virus, it's very easy to acknowledge that".
My reply (if such a comment will be waiting for me) is:
1) As you can see, I've said that way before anyone ever thought that corona would be something way bigger than just the name of a popular beer.
2) Let me explain why my... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
SIMON PROPERTY GROUP 155.27   20.8 7.48 8.40 5.21
EXXON MOBIL 71.98   17.3 4.15 3.48 4.83


Older articles featuring Simon Property Group (SPG):
Introducing The Dividend Growth 30
Dividend Champion And Contender Highlights: Week Of July 5
5 Safe And Cheap Dividend Stocks To Invest In (July 2020)
Dividends By The Numbers In June 2020 And 2020-Q2
Dividend Champions For July 2020
Retail REITs: Double-Digit Yields, Secular Shifts And Mean-Reversion
The 8% Dividend Sleeve
3 REITs That Could Cut Their Dividends, And We're Still Buying
Cut These Dividend Stocks Before They Cut
5 Safe And Cheap Dividend Stocks To Invest In (June 2020)