PLD vs SPG: Dividend Yield, Growth & Safety Comparison
Prologis, Inc. (PLD) and Simon Property Group Inc. (SPG) are both in the Real Estate sector, making them natural rivals for dividend investors. SPG offers a significantly higher 4.36% yield compared to PLD's 2.88%, a gap of 1.48%. For dividend growth, PLD leads with a 5-year CAGR of 12.5% versus SPG's 10.0%. PLD holds the edge in dividend safety with a "Safe" rating. PLD is a Dividend Contender with 12 years of consecutive increases.
Key Metrics Comparison
| Metric | PLD | SPG |
|---|
| Dividend Yield | 2.88% | 4.36% |
| Annual Dividend | $4.04 | $8.55 |
| 5-Year CAGR | 12.5% | 10.0% |
| Payout Ratio | 1% | 60% |
| Consecutive Years | 12 | 4 |
| Price | $138.93 | $197.66 |
Yield Comparison
Simon Property Group Inc. (SPG) currently yields 4.36%, which is attractive for the broader market. That's 1.48% more than Prologis, Inc. (PLD), which yields 2.88%. In dollar terms, SPG pays $8.55/share annually versus PLD's $4.04/share.
Dividend Growth
Over the past five years, PLD has grown its dividend at a 12.5% CAGR compared to SPG's 10.0%. PLD: Dividend growth is slowing — the 3-year CAGR of 7.8% trails the 5-year rate of 12.5% and the 10-year rate of 10.2%. 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
PLD'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. PLD'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 $288/year from PLD — a difference of $148/year. At $100,000, that gap widens to $1480/year.
Verdict
- Best for income: SPG
- Best for growth: PLD
- Best for safety: PLD
Frequently Asked Questions
Which has a higher dividend yield, PLD or SPG?
Simon Property Group Inc. (SPG) has a higher dividend yield of 4.36% compared to Prologis, Inc. (PLD) at 2.88%.
Is PLD or SPG a better dividend growth stock?
Prologis, Inc. has the stronger dividend growth with a 5-year CAGR of 12.5%, compared to Simon Property Group Inc.'s 10.0%.
Which is safer for dividend income, PLD or SPG?
Prologis, Inc.'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 PLD vs SPG generate?
A $10,000 investment in PLD generates approximately $288/year in dividends, while the same amount in SPG generates about $436/year.
Is PLD or SPG a Dividend Aristocrat?
Prologis, Inc. is a Dividend Contender with 12 consecutive years of increases. Simon Property Group Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, PLD or SPG?
Prologis, Inc. 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.
PLD vs SPG: which is better for retirement income?
It depends on your priorities. SPG for current income, PLD for dividend growth, PLD for safety. Many retirement investors hold both for diversification.
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