Where does Macerich (MAC) rank after its 4% announced dividend increase?

mac

Summary: The Macerich Company (MAC) announced a regular quarterly dividend of $0.71, a 4 percent increase from the prior rate of $0.68 per share. The company has maintained a 5% increase in annual dividends over the last six years. It yieds a generous 3.55%.  The dividend will be paid at the new higher rate on December 2, 2016, to shareholders of record at close of business on November 11, 2016. The Macerich Co. is currently priced at $76.95.

Listed in the table below are the quarterly dividend payments since 2010. Our analysis of The Macerich Co. Inc. as a Top 100 Dividend Stock candidate is listed below;

Date Quarterly Dividend
11/11/2016 0.71
8/17/2016 0.68
5/3/2016 0.68
2/17/2016 0.68
11/9/2015 4.68
8/18/2015 0.65
5/6/2015 0.65
2/18/2015 0.65
11/7/2014 0.65
8/18/2014 0.62
5/7/2014 0.62
2/19/2014 0.62
11/7/2013 0.62
8/16/2013 0.58
5/8/2013 0.58
2/20/2013 0.58
11/7/2012 0.58
8/16/2012 0.55
5/8/2012 0.55
2/17/2012 0.55
11/8/2011 0.55
8/17/2011 0.5
5/6/2011 0.5
2/17/2011 0.5
11/9/2010 0.5
8/18/2010 0.5
5/6/2010 0.5
2/11/2010 0.06

Analysis of The Macerich Co. is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 3.55%  90
Dividend Growth (3-6 year avg) 5.0%  308
Forward P/E 17.36  147
S&P Financial Rating B+  200
Beta 0.90  100
Total Score    845

Additional Information;

% Yield 3 Year Div. Growth Rate 6 Year Div. Growth Rate BV 2016 P/BV Ratio 10 yr P/BV Low 10 yr P/BV High 5 yr max Yield % 5 yr lowest Yield %
3.55% 5.3% 4.7% 29.80 2.58 0.28 5.71 4.17% 2.69%

Final Analysis;

  • Macerich’s dividend yield is above the average of the S&P 500 Index and is trading above its average historical dividend yield.
  • Macerich maintains a 3 year dividend growth rate of 5.3%.
  • Macerich has paid out a dividend consecutively for the past 22 years.
  • Macerich is trading at a high forward P/E ratio and at a low price/book value (P/BV) ratio.  From a relative valuation perspective based upon P/BV, Macerich is undervalued.
  • Macerich maintains a credit rating of B+. This is below investment grade, a negative.
  • Macerich maintains a beta of 0.90, lower than the average company.

Based upon its poor financial rating and high P/E ratio, The Macerich Co. does not qualify as one of our Top 100 Dividend Stocks.

The Macerich Co. Dividend Yield Chart (Click to enlarge)

mac2

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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