2-Star Dividend Stocks Poised to Plunge: General Growth?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, shopping mall owner General Growth Properties (NYSE: GGP  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at General Growth and see what CAPS investors are saying about the stock right now.

General Growth facts

Headquarters (founded)

Chicago (1986)

Market Cap

$17.9 billion

Industry

Retail REIT

Trailing-12-Month Revenue

$2.8 billion

Management

CEO Sandeep Mathran
CFO Michael Berman

Return on Equity (average, past 3 years)

(13.7%)

Cash / Debt

$638.0 million / $16.3 billion

Dividend Yield

2.3%

Competitors

CBL & Associates
Macerich Company
Simon Property Group 
(NYSE: SPG  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 27% of the 546 members who have rated General Growth believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, AygHead, succinctly summed up the underperform case for our community:

While [General Growth] runs some great retail properties, retailing values in general are on a long term secular decline owing to a shift to online retailers such as Amazon (Nasdaq: AMZN  ) . So, [General Growth] properties may do OK, but rents they can charge will lag to keep competitive. This will mute future / long term stock appreciation.

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Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com. Motley Fool newsletter services recommend Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 05, 2012, at 10:55 AM, teamfaulkner wrote:

    I have to respectfully disagree with AygHead. People have been saying that online retailers were going to kill malls for over 10 years. If you look at GGP's numbers they tell a different story. Their rents are going up, their occupancy is going up, their comp sales psf are at an all time high. They have restrutured billions of dollars in debt at a much lower rate, all of which have a positive effect on the bottom line. I see them continuing to show steady growth for years to come.

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