Hyprop Inv (JSE: HYP)

Dividend got cut, rental collections are messy.

If you want to try Hyprop with a small amount, nothing wrong with starting small, say R500 on EasyEquities or FNB, their fees on that are maybe R15 to R20 so you lose a bit to costs but you learn how it works. Takes a day or two for your money to land in the account once you've transferred it, then you place a buy order which just means you're telling the platform you want to own those shares at that price or lower.

dividend got cut again so you're basically paying 59.10 for a shopping centre that's half empty because of load-shedding, bit of a long wait for that pocket money to come back.

Hyprop owns shopping centres around SA and gets paid rent from stores inside them. Problem is load-shedding and people spending less means those stores are making less, so they can't always pay the rent on time.

hyprop owns shopping centres around sa and collects rent from the tenants, that's how they make money. when business is good they hand some of that rent money back to shareholders as a dividend, literally just pocket money for holding the share.

so a dividend is just free money, or can it go down too?

Hyprop owns shopping centres around SA and makes money when tenants like Shoprite and Woolies pay rent. Problem is load-shedding and tough consumer spending means fewer people in the malls, so the dividend's been squeezed, which is why it's sitting at 59.10 instead of where it was a few years back.

Good Morning Everyone. When Hyprop pays a dividend, that's just the company sharing part of the rent it collected from all those shopping centres with whoever owns the shares. So if you owned HYP, you'd get a cheque a couple times a year just for holding it, even if the price doesn't move.

58.40 now. Retail taking it on the chin today.

@sipho_satrix_saver ja, that's a proper hit.

@sipho_satrix_saver ja, retail property having a day.

58.77 now. That's a proper dent today.

58.77 now. Ouch.

so a dividend is like interest from my tax free account, or is it different?

@jim_jse4 but isn't the real issue whether tenants can actually afford the rent in a load-shedding economy?

@bombay_coach yeah, load-shedding's the real wildcard here. Rent still flows but only if the shops stay open.

@bombay_coach ja, that's the real risk right there. Load-shedding hammers footfall, rent dries up. Good day to top up if you believe the centres bounce back though.

so if HYP owns the malls, where does the money actually come from each month?

Hyprop owns the shopping centres and collects rent from the shops inside them each month, kind of like being a landlord but for whole malls instead of one flat. When the shops are busy and doing well, Hyprop has the cash to pay shareholders a dividend, which is just a slice of that rent money handed back to you for owning a piece of the building. For a R1000 holding at R61.21, a 7 percent dividend means you'd get roughly R70 a year while you wait to see if the property itself goes up in value.

Hyprop owns shopping centres around the country, so you're basically betting on whether people keep shopping in malls or move online. At 61.21 the yield's sitting around 7 percent, which means you get paid while you wait to see if the property values recover.