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Brookfield Property Partners: It's Literally The Best Time Ever To Buy This 7.1% Yielding Blue-Chip


  • Buying quality high-yield blue-chips at massive discounts to fair value is the most time tested way to build both wealth and income over time.
  • Right now, Brookfield Property Partners (and its REIT counterpart) are the most undervalued quality real estate stocks you can buy.
  • This 7.1% yielding blue-chip owns world-class assets, is run by the best global real estate managers on earth (26% long-term returns on investments) and is trading at a 38% discount to NAV.
  • Management has a proven track record of solid cash flow and payout growth, and a great long-term plan to continue delivering industry-leading growth rates and up to 25% CAGR total returns over the next five years.
  • While there are plenty of risks to owning BPY and BPR, for patient high-yield value investors these are my two highest conviction buys right now, which is why I recently more than doubled my position in BPY.

(Source: imgflip)

History has proven that value dividend investing is the most powerful way for regular people to build incredible passive income and wealth over time. This is why my high-yield income growth retirement portfolio is dedicated to three principles:

  • maximum safe yield
  • fast long-term dividend growth
  • buying stocks at deep discounts to fair value

Such an approach isn't easy, requiring incredible patience and a willingness to "catch falling knives with conviction". But if you have the iron stomach to handle volatility and long periods of underperformance, the results can be incredible. For example, many of the REITs I bought a year ago, during the most recent REIT bear market, are now showing 20% to 45% total returns over just 12 months.

While REITs, in general, remain attractively priced, there are now far fewer table pounding deep value opportunities left for high-yield blue-chip investors to choose from. However, Brookfield Property Partners (NASDAQ:BPY), as well as its REIT counterpart Brookfield Property REIT (BPR), are two of my highest conviction buys right now.

(Source: Ycharts)

That's because Wall Street has turned so bearish on BPY that it recently hit an all-time low, meaning the highest yield in its history (7.2%) and most attractive valuation (40% discount to NAV). Or to put another way, there has literally never been a better time to buy this stock. This is why I recently bought $15,000 worth of BPY, more than doubling my position (after tripling it a few months ago). What's more, I have limits in place to continue adding in case the market wishes to offer me the Berkshire (BRK.B) of global real estate stocks at even great discounts.

So let's take a look at the reason that the market hates Brookfield Property so much right now, as to totally discount its strong and

This article was written by

Dividend Sensei profile picture
Maximize your income with the world’s highest-quality dividend investments

Adam Galas is a co-founder of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 5,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) The Intelligent REIT Investor (newsletter), (2) The Intelligent Dividend Investor (newsletter), (3) iREIT on Alpha (Seeking Alpha), and (4) The Dividend Kings (Seeking Alpha).

I'm a proud Army veteran and have seven years of experience as an analyst/investment writer for Dividend Kings, iREIT, The Intelligent Dividend Investor, The Motley Fool, Simply Safe Dividends, Seeking Alpha, and the Adam Mesh Trading Group. I'm proud to be one of the founders of The Dividend Kings, joining forces with Brad Thomas, Chuck Carnevale, and other leading income writers to offer the best premium service on Seeking Alpha's Market Place.

My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives.

With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and safe and dependable income streams in all economic and market conditions.

Analyst’s Disclosure: I am/we are long BPY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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