SCG share price in focus
Scentre Group is a real estate company focused on shopping centres. The group operates under the Westfield brand in Australia and New Zealand.
Today, Scentre has a portfolio of 42 centres valued at more than $34 billion. Their occupancy rate sits above 99% and the centres receive more than half a billion visitors each year.
The company’s centres are located in prime trade areas, anchored by long-term tenancies with retail outlets that appeal to various consumers across fashion, dining, leisure and entertainment.
COL shares
Coles is a leading Australian retailer providing everyday essentials including fresh food, groceries, general merchandise, liquor, fuel and financial services. It was founded in 1914 in Victoria and still calls Melbourne its home base.
Coles was formerly owned by the listed giant Wesfarmers from 2007 until 2018, when it was spun-off and listed as its own entity on the ASX under the ticker symbol ‘COL’. Coles’ earnings are unsurprisingly dominated by the supermarket side of the business, however, it partly or fully owns and operates adjacent businesses like flybuys, Liquorland, First Choice, Vintage Cellars, Coles Express and more.
While Coles is second to Woolworths in the supermarket sector, it still controls a significant share of the Australian grocery market (about 28%). Since its listing in 2018, Coles has established itself as a fairly reliable dividend payer for investors seeking income.
SCG & COL share price valuation
One way to have a ‘fast read’ of where the SCG share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.
Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Scentre Group shares have a dividend yield of around 4.51%, compared to its 5-year average of 4.78%. In other words, SCG shares are trading lower than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends have fallen, or that the share price is increasing, or both. In the case of SCG, the annual report shows last year’s dividend was greater than the 3-year average, so the dividend has been growing.
COL is offering a historical dividend yield of around 2.97%, which compares to its 5-year average of 3.76%.
This is just one of many ways you could put a value on COL shares. The Rask websites offer free online investing courses, created by analysts explaining valuation methods like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets which can help you learn how to value a company like SCG or COL.
