May 31, 2025 a 11:30 am
SPG: Dividend Analysis - Simon Property Group, Inc.
Simon Property Group, Inc. presents an intriguing dividend profile with both opportunities and challenges. While its dividend yield stands appealingly high at 5.12%, potential investors should also consider the high payout ratios and recent fluctuations in dividend growth. This analysis will delve into its key financial metrics to provide a comprehensive dividend evaluation.
📊 Overview
| Detail | Value |
|---|---|
| Sector | Real Estate |
| Dividend Yield | 5.12 % |
| Current Dividend Per Share | 9.34 USD |
| Dividend History | 32 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The long-standing dividend history of Simon Property Group, Inc. solidifies its reputation as a dividend-payer. However, attention should be given to any potential irregularities in dividend distributions.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 4.20 |
| 2024 | 8.10 |
| 2023 | 7.45 |
| 2022 | 6.90 |
| 2021 | 5.85 |
📈 Dividend Growth
Analyzing dividend growth provides insight into the company's capacity to enhance shareholder returns through dividends. It's vital to monitor these trends for future income predictions.
| Time | Growth |
|---|---|
| 3 years | 11.46 % |
| 5 years | -0.49 % |
The average dividend growth is -0.49 % over 5 years. This shows moderate but steady dividend growth.
💴 Payout Ratio
The payout ratio assesses how much of the company's earnings are paid out as dividends, a crucial factor in understanding dividend sustainability.
| Key figure | Ratio |
|---|---|
| EPS-based | 148.47 % |
| Free cash flow-based | 100.10 % |
High payout ratios, such as 148.47 % (EPS) and 100.10 % (FCF), suggest a potentially unsustainable dividend policy that merits further analysis.
🔍 Cashflow & Capital Efficiency
Analyzing cashflow and capital efficiency metrics help us understand the company's operational efficiency and financial health.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 8.09 % | 6.72 % | 5.45 % |
| Earnings Yield | 5.56 % | 4.89 % | 4.22 % |
| CAPEX to Operating Cash Flow | 0.17 | 0.20 | 0.19 |
| Stock-based Compensation to Revenue | 0.47 % | 0 % | 0 % |
| Free Cash Flow / Operating Cash Flow Ratio | 0.83 | 0.80 | 0.80 |
The data reflects a stable cashflow but highlights significant capital expenditure relative to cash flow, requiring careful monitoring.
📉 Balance Sheet & Leverage Analysis
Examining leverage ratios and balance sheet metrics provides a picture of the company's financial stability and risk.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 8.11 | 8.77 | 8.42 |
| Debt-to-Assets | 0.77 | 0.77 | 0.76 |
| Debt-to-Capital | 0.89 | 0.90 | 0.89 |
| Net Debt to EBITDA | 5.41 | 6.23 | 4.66 |
| Current Ratio | 0.45 | 0.46 | 0.83 |
| Quick Ratio | 0.45 | 0.46 | 0.83 |
| Financial Leverage | 10.52 | 11.34 | 11.02 |
The company's elevated debt levels indicate potential leverage risks, albeit balanced by operational efficiencies.
✅ Fundamental Strength & Profitability
Evaluating profitability and returns helps in understanding business quality and economic value generation.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 68.17 % | 75.53 % | 80.59 % |
| Return on Assets | 6.48 % | 6.66 % | 7.32 % |
| Return on Invested Capital | 8.38 % | 9.03 % | 10.57 % |
| Margins: Net | 40.43 % | 40.35 % | 39.75 % |
| Margins: EBIT | 48.83 % | 49.60 % | 61.34 % |
| Margins: EBITDA | 86.73 % | 71.91 % | 84.14 % |
| Margins: Gross | 81.08 % | 83.55 % | 82.50 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
The strong profitability ratios and return metrics highlight substantial economic profit potential.
📊 Price Development
🎯 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4/5 | |
| Dividend Stability | 3/5 | |
| Dividend Growth | 2/5 | |
| Payout Ratio | 2/5 | |
| Financial Stability | 3/5 | |
| Dividend Continuity | 4/5 | |
| Cashflow Coverage | 3/5 | |
| Balance Sheet Quality | 3/5 |
Total Score: 24/40
✅ Rating
Simon Property Group, Inc. exhibits a reasonable dividend profile with a notably high yield but some sustainability concerns. Investors should weigh the yield against financial stability and underlying growth prospects, and consider this stock as part of a diversified dividend-oriented portfolio.