The 100% payout of profit in the form of dividends has worked for them. They seem to have a firm grip on costs and there is need to be when running on slim, competitive wholesale margins. The point is they have been able to make this work for over 20 years. The main point is that the 100% payout is not mandatory - at any point they can change the policy and whats more - how many companies have this sort of flexibility. The borrowings can also be seen from the same point of view. Reduce the dividend and pay down the debt. There is no danger there - it is just a matter of how DDR want to run their finances - the profit is there - it is just a matter of where they apportion it. I know that this would affect the metrics from an investment point of view and those who invest for dividends would jettison quickly. Fairly priced - yes. I am still a buyer at low $8s and high $7s.
DDR Price at posting:
$8.54 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)