Today I bought 200 shares of Washington Prime Group at a price of $6,21 per share. It’s a more speculative purchase.
Washington Prime Group is a REIT which invests in shopping centers and is a spinoff from Simon Property Group. Washington Prime Group is disfavored in the market at the moment due to amazon fears. Washington Prime Group is aggressively working on the traffic in the malls they own by converting them to local dominant shopping centers by attracting entertainment and foot tenants. They try to increase the traffic by offering a combined shopping and leisure experience.
Washington Prime Group has a dividend of $1,00 per share per year at the moment. This results in a dividend yield of 16,1%. This insane yield is a clear warning sign that the market is expecting a dividend cut. I picked up a few shares as a speculative investment. Washington Prime Group is after reaching a 52 weeks high $9,58 in July down 35% to $6,21.
For me it feels like the market did overreact to this REIT, but I know that in investing feeling is not always the best advisor. Nevertheless I added 200 shares to my portfolio which at the current quarterly dividend of $0,25 brings in an estimated yearly dividend income of $200.