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Friday, 01/23/2004

The MAC Daddy of Dividends
By Nich Sheldon
MAC - Macerich Co.

Company Description

The Macerich Company is a fully integrated self-managed and self- administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The Company is the sole general partner and owns an 82% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 59 million square feet of gross leaseable area consisting primarily of interests in 58 regional malls. Additional information about The Macerich Company can be obtained from the Company's web site at www.macerich.com . [Source: Company Press Release]

[Source: Company Press Release]

Reasons to Invest:

This week's Drip of the week is poised for higher ground, and the good thing about it is that there is no fees to auto reinvest in the stock. The company accepts foreign accounts, and allows temper enrollment and does not charge a dime for either of these added incentives. Curious about what type of dividend they yield? Well... read on, I promise you'll be impressed.

Macerich Co. Real Estate Operations (NYSE:MAC) has been trending higher in a slow rolling regression channel since January of 2003. Nothing has dampened the stocks spirits nor caused any snags in their road to the top. Part of the reason for their success is the fact that they have no overhead resistance to slow them down. The company has been on the NYSE since March of 1994, where they started trading under 20 dollars. The 30 area turned out to be long-term resistance for the stock, but since breaking out of its channel in January of last year the stock has not looked back. What's more impressive than that is the fact that the stock has been trading over the top of its channel for the past month, continuing to set new highs, only to pause for a session or two of profit taking.

I was perusing through MAC's market headlines and found it interesting that the stock has been upgraded 3 times in the past two and a half months. On January 5th, 2004 Smith Barney Citigroup upgraded MAC from a Hold to a Buy rating. On December 17th, 2003 Morgan Stanley upgraded MAC from an Underweight rating to an Equal-weight rating. On November 5th, 2003 MAC received a new star rating. The company's overall star rating is 4.5 out of five, with four brokers rating them in total.

On December 19th, 2003 Macerich purchased a luxury open-air center called Biltmore Fashion Park in Phoenix. The property will be owned by a 50/50 joint venture between an investment partner and Macerich. The deal cost 158.5 million, but is a huge strength in Macerich's Arizona portfolio, especially since the open mall brings in $470 per square foot (the mall is currently 611,000 square feet).

I ventured a quick look at the point and figure chart on MAC and was not surprised to see the stock on an ascending Triple Top Breakout signal.

Outside of the news, MAC reports a 15.51 percent profit margin, and a 12.89-operating margin, which is usually a good sign of financial strength. The company's revenue growth is a healthy 13.30 percent, and they reported earning's growth at 4.70 percent. With that said I see no weakness for the company, and with no overhead resistance to slow down their slow progression higher, I can see their bullish trend continuing throughout the rest of the year.

Their 52-week change is noted at 53.98 percent, and relative to the S&P 500 it's 19.44 percent. Are you still not impressed? How about one of the best or highest paying dividends that I have spotlighted on the Drip of the Week since becoming the editor of DripAdvisor.com. That's right, MAC has an annual dividend of $2.44 per share, which totals out to a dividend yield of 5.36 percent. Talk about incentive!

This ends another exciting episode of the DripAdvisor.com Drip of the Week. Stay tuned next week, as we will spotlight another stock worthy of the DripAdvisor.com limelight.

Until Next Week,
Nich Sheldon
Editor

Broker Recommendations

Strong Buy         2
Buy                5
Hold               5
Sell               0
Strong Sell        0

Brokers Covering  12


DRIP Information:
Shares to Qualify = 1
Auto-reinvestment = Yes
Accept Foreign Accounts: Yes
Temper Enrollment: Yes

Min/Max Investment = $50-$250,000/Year


Reinvestment Fees - 
Dividend investment fees: 0
Cash investment fees: 0
Auto reinvestment fees: 0


Transfer Agent:
First Chicago Trust
800-567-0169


Corporate Headquarters:
401 Wilshire Boulevard, Suite 700
Santa Monica, CA 90401
Phone: (310) 394-6000
Fax: (310) 394-2791



 
 

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