AMT vs SPG: Dividend Yield, Growth & Safety Comparison
American Tower Corp /Ma/ (AMT) and Simon Property Group Inc. (SPG) are both in the Real Estate sector, making them natural rivals for dividend investors. SPG edges ahead on yield at 4.36% versus AMT's 3.76%. For dividend growth, SPG leads with a 5-year CAGR of 10.0% versus AMT's 6.9%. AMT holds the edge in dividend safety with a "Safe" rating. AMT is a Dividend Contender with 14 years of consecutive increases.
Key Metrics Comparison
| Metric | AMT | SPG |
|---|
| Dividend Yield | 3.76% | 4.36% |
| Annual Dividend | $6.72 | $8.55 |
| 5-Year CAGR | 6.9% | 10.0% |
| Payout Ratio | 1% | 60% |
| Consecutive Years | 14 | 4 |
| Price | $190.81 | $197.66 |
Yield Comparison
Simon Property Group Inc. (SPG) currently yields 4.36%, which is attractive for the broader market. That's 0.59% more than American Tower Corp /Ma/ (AMT), which yields 3.76%. In dollar terms, SPG pays $8.55/share annually versus AMT's $6.72/share.
Dividend Growth
Over the past five years, SPG has grown its dividend at a 10.0% CAGR compared to AMT's 6.9%. AMT: Dividend growth is slowing — the 3-year CAGR of 2.7% trails the 5-year rate of 6.9% and the 10-year rate of 13.5%. SPG: Dividend growth is slowing — the 3-year CAGR of 7.1% trails the 5-year rate of 10.0% and the 10-year rate of 6.4%.
Dividend Safety
AMT's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. SPG's dividend safety is rated "Moderate." The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x. AMT's payout ratio of 1% is more conservative than SPG's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SPG generates approximately $436/year in dividend income, compared to $376/year from AMT — a difference of $60/year. At $100,000, that gap widens to $600/year.
Verdict
- Best for income: SPG
- Best for growth: SPG
- Best for safety: AMT
Frequently Asked Questions
Which has a higher dividend yield, AMT or SPG?
Simon Property Group Inc. (SPG) has a higher dividend yield of 4.36% compared to American Tower Corp /Ma/ (AMT) at 3.76%.
Is AMT or SPG a better dividend growth stock?
Simon Property Group Inc. has the stronger dividend growth with a 5-year CAGR of 10.0%, compared to American Tower Corp /Ma/'s 6.9%.
Which is safer for dividend income, AMT or SPG?
American Tower Corp /Ma/'s dividend safety is rated "Safe" while Simon Property Group Inc. is rated "Moderate." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.9x. The payout ratio of 60% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.7x.
How much income does $10,000 in AMT vs SPG generate?
A $10,000 investment in AMT generates approximately $376/year in dividends, while the same amount in SPG generates about $436/year.
Is AMT or SPG a Dividend Aristocrat?
American Tower Corp /Ma/ is a Dividend Contender with 14 consecutive years of increases. Simon Property Group Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, AMT or SPG?
American Tower Corp /Ma/ has a lower payout ratio of 1% compared to Simon Property Group Inc.'s 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMT vs SPG: which is better for retirement income?
It depends on your priorities. SPG for current income, SPG for dividend growth, AMT for safety. Many retirement investors hold both for diversification.
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