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.