April 11, 2025 a 02:46 pm
SPG: Dividend Analysis - Simon Property Group, Inc.
Simon Property Group, Inc. presents itself as a reliable player in the real estate investment trust sector with a strong dividend history. Despite challenges, the company remains a dividend stalwart with consistent payouts, although it shows some room for improvement in growth metrics. Investors should closely monitor payout ratios to ensure sustainability.
Overview 📊
This section provides a snapshot of key dividend metrics and insights into the company's industry position.
| Metric | Value |
|---|---|
| Sector | Real Estate Investment Trust (REIT) |
| Dividend yield | 4.99% |
| Current dividend per share | 9.33 USD |
| Dividend history | 32 years |
| Last cut or suspension | None |
Dividend History 📜
A strong dividend history demonstrates the reliability of Simon Property Group in remunerating its investors, crucial for those seeking stable income. It indicates financial stability and management's commitment to reward shareholders over time.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.1 |
| 2024 | 8.10 |
| 2023 | 7.45 |
| 2022 | 6.90 |
| 2021 | 5.85 |
Dividend Growth 📈
Growth in dividends is a vital indicator of a company’s future prospects. This reflects not only the firm’s capacity to increase payouts but also its financial health and profitability.
| Time | Growth |
|---|---|
| 3 years | 11.46% |
| 5 years | -0.49% |
The average dividend growth is -0.49% over 5 years. This indicates a stagnation in dividend increase, underscoring potential challenges in revenue growth.
Payout Ratio 🗣️
The payout ratio is a significant metric that assesses dividend sustainability. A high ratio could imply that a company might have limited room to increase future dividends or may be overleveraged in terms of cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 128.83% |
| Free cash flow-based | 99.47% |
These elevated payout ratios (EPS and FCF) might suggest potential risks, as the dividends exceed earnings and nearly match free cash flow, highlighting sustainability concerns.
Cashflow & Capital Efficiency 💰
Analyzing cash flow and capital efficiency reveals the company's ability to generate cash relative to its capital expenditure, a critical factor in maintaining and growing dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.44% | 6.72% | 8.09% |
| Earnings Yield | 0.00001% | 4.89% | 5.56% |
| CAPEX to Operating Cash Flow | - | 20.18% | 17.26% |
| Stock-based Compensation to Revenue | - | - | 0.47% |
| Free Cash Flow / Operating Cash Flow Ratio | 80.19% | 79.82% | 82.74% |
The relatively stable cash flow metrics suggest reasonable cash generation efficiency, with room for improvement in terms of capital allocation.
Balance Sheet & Leverage Analysis 🧾
A sound balance sheet and favorable leverage ratios are imperative for maintaining financial stability and enabling consistent dividend payouts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 8.42 | 8.77 | 8.11 |
| Debt-to-Assets | 76.48% | 77.35% | 77.12% |
| Debt-to-Capital | 89.39% | 89.77% | 89.02% |
| Net Debt to EBITDA | 5.37 | 6.23 | 5.41 |
| Current Ratio | 0.83 | 0.46 | 0.45 |
| Quick Ratio | 0.65 | 0.46 | 0.45 |
| Financial Leverage | 11.02 | 11.34 | 10.52 |
The high leverage ratios necessitate careful management of liabilities to ensure the ability to service debt obligations, which in turn supports dividend payments.
Fundamental Strength & Profitability 💪
Strong fundamental and profitability metrics underpin a company's capacity to sustainably reward shareholders while driving growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 0.0002% | 75.53% | 68.17% |
| Return on Assets | 0.00002% | 6.66% | 6.48% |
| Return on Invested Capital | 10.81% | 9.03% | 8.38% |
| Net Margin | 0.0001% | 40.35% | 40.43% |
| EBIT Margin | 51.86% | 49.60% | 48.83% |
| EBITDA Margin | 73.08% | 71.91% | 86.73% |
| Gross Margin | 84.27% | 83.55% | 81.08% |
The robust profitability ratios reflect the firm's efficient operations and capacity to maintain a competitive edge in its sector.
Price Development 📉
Dividend Scoring System ✅
| Category | Score | Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 2 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
Rating 🏆
Simon Property Group, Inc. boasts a strong dividend history and stability, though areas such as growth and payout ratios present both opportunities and challenges. Investors seeking consistent income may find SPG appealing, yet they should keep an eye on the company's financial leverage and payout sustainability.