Thus, it’s probably best to stick with lower-risk dividend stocks as retail should weaken further. Losses, however, grew from $8.01 million to $61.2 million. Lease income increased very slightly in 2022 for the company. That could lead to businesses in those malls and outlets shutting down, lowering revenues and increasing stress. That weaker consumer, in turn, is less-likely to frequent Simon Property Group’s sites. The reason to avoid SPG stock is simple: retail sales fell in February, signaling an increasingly weaker consumer. The company leases malls and outlets along with mills. I would suggest avoiding Simon Property Group, primarily because the company’s portfolio is heading into weakness. At the same, high yields correlate to greater risk, scaring capital away. Many times, such high yields are enough to entice investors to investing their capital in these stocks. Simon Property Group (NYSE: SPG) is a retail REIT that certainly is among the higher-yielding dividend stocks in the market, with a current yield of roughly 6.9%. And given Q4 performance was so weak, this doesn’t bode well for shareholders in the wake of so much market instability. The overall effect here is simple: KEY stock could still have serious underlying issues that the FDIC can’t glaze over. Total revenues fell 2.5% during the period. Ke圜orp was no different, with $1.227 billion in net interest income in Q4, up 18.2%.īut it wasn’t enough. That’s generally a boon to banks that benefit from higher interest income due to those higher rates. The Federal Reserve pushed rates aggressively higher in 2022. Earnings were below the low end of analysts’ expectations. In the fourth quarter, Ke圜orp did not perform strongly. ![]() The primary reason, outside of unknown instabilities, is its weak performance of late. But while that will temporarily prop it up, I still believe it’s a dividend stock to avoid. Yes, like all banks, Ke圜orp appears to be ‘safe’ following the FDIC interceding. Ke圜orp (NYSE: KEY) is a regional bank stock that was already facing trouble before regional banks were under such pointed scrutiny. Wells Fargo continues to have a less-than-stellar reputation, and it wouldn’t be surprising for material weaknesses to emerge again soon. The firm’s fake account scandal is likely a thing of the past, even as it garners headlines in court recently.īut I do question whether a firm that set sales goals so high that workers were compelled to create fake accounts, is suddenly so different. Wells Fargo shouldn’t be judged currently solely based on its past transgressions. The fact that Wells Fargo is among 4 banks that made $5 billion uninsured deposits each into First Republic Bank (NYSE: FRC) seems to strengthen that sentiment: It’s strong enough to contribute and act as an anchor for the overall banking system.īut despite Wells Fargo’s size and reputation due to that scale, there are lots of things not to like. By some logic, Wells Fargo should be among the dividend stocks in a favorable position right now, as big banks appear to be bastions of safety relative to their regional peers. Wells Fargo (NYSE: WFC) is one of the largest banks in the U.S., boasting a market capitalization of around $145 billion. That said, the strongest big banks look like good opportunities as customers flock to safety. Dividend stocks in those sectors are highly risky currently. Consumer spending remains volatile, as does commercial real estate. ![]() However, I’d avoid the weakest large and regional banks.įurther, there are other economic issues afoot. That effectively subverts risk altogether which has caused multiple banks teetering on the brink of failure to rebound. The FDIC has implicitly guaranteed all uninsured deposits. The FDIC has stepped in, and things appear calm, for the moment. As a result, the potential for a financial crisis a-la 2008/2009 remains high. ![]() The failures of banks including Silvergate Capital (NYSE: SI), Silicon Valley Bank (NASDAQ: SIVB), and Signature Bank (NASDAQ: SBNY) sent shockwaves rippling through the financial system. ![]() The conversation surrounding which dividend stocks to buy and which to avoid centers on a wobbly economy.
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