Washington Prime Group: A 19% Yield That May Not Be As Dangerous As It Seems

But if the CFO is correct and the company is able to cover the dividend with FFO, the stock will receive an upgrade.

The company has consistently paid a $0.25 per share quarterly dividend since 2014, so its short track record is solid.

Washington Prime Group is spending money on its future, which is putting pressure on cash flow today. Analysts don’t think FFO will cover the dividend in 2019. Management says it will.

For now, the lower FFO and expected too-high payout ratio are hurting the stock’s dividend safety rating. If at the end of the year FFO has in fact covered the dividend, the rating will be higher.

(Click on image to enlarge)

Dividend Safety Rating: D

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