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High Dividends Don't Mean Great Bargains

Published Sun, 25 Oct 2020 07:00:00 -0400 on Seeking Alpha

Seeking AlphaREITsHigh Dividends Don't Mean Great BargainsOct. 25, 2020 7:00 AM ET|| Includes: AFIN, GNL, WPGby: Brad ThomasBrad Thomas iREIT on AlphaiREIT, the #1 real estate service for sleeping well at night. SummarySo, before you buy up all those perceived bargains, stop.
Take a deep breath. And ask yourself: Is this too good to be true?
When you lay down with dogs, you wake up with fleas.
There’s clearly a market for cheap things in the United States. Market data portal Statista said this on May 28:
“Dollar General has had explosive growth… nearly doubling [its] store count from 8,194 [in 2007] to 16,278 in 2019. In fact, Dollar General had the most store locations of any retailer in 2017. Over the same period, the corporation’s sales jumped from 9.5 billion to over 25 billion U.S. dollars.”
As for dollar stores in general, Statista noted almost two months later that there were 30,332 in 2017, 31,620 in 2018, and 33,185 in 2019.
Those were all periods of significant economic expansion and lowering unemployment. Yet the desire for savings runs deep.
Hardly a 21st century phenomenon, consider Walmart’s (NYSE: WMT) epic rise in the last few decades of the 20th century. It was so intense it prompted talk of the “Walmart Effect.”
According to The Street, it clinched the title of America’s largest retailer in 1990 – something I can attest to personally. Back when I was a developer, some of the most profitable real estate opportunities could be found adjacent to the enormous discount influencer.
That’s where the traffic was almost always going to be guaranteed in America’s apparently insatiable demand for cheap goods.

There’s the Target Effect Too
None of the commentary above is meant to be either a negative or positive commentary on Walmart (or dollar stores). I know there are pros and cons to consider on local, national, and international levels alike.
For this article, though, let’s... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
WP GLIMCHER 4.18   24.6 0.17 1.00 24.10


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