The rumored “death of the shopping mall” is not only
wreaking havoc among retail stocks, but it is also dragging down REITs that own
retail properties. Take, for example, Kimco Realty (KIM). Shares of Kimco have
declined 25% so far in 2017. The stock is sitting at lows not seen in the past
five years.
The biggest reason for the decline is that investors are
concerned about the ripple-effects of the decline of brick-and-mortar retailers
eventually spreading to the REITs that own the real estate. However, Kimco’s
fundamentals have held up so far this year. The prolonged decline in the share
price has pushed up Kimco’s dividend yield to 5.7% Kimco is one of 295 stocks
with a 5%+ dividend yield.
This article will discuss why investors should not assume
Kimco will suffer alongside the retail industry. If anything, its huge share
price decline presents a compelling buying opportunity for income investors.