How to Avoid Spooky Stocks for Halloween

You can get admirable returns with quality stocks such as Brookfield Property Partners LP (TSX:BPY.UN)(NYSE:BPY) without getting spooked.

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Okay, so your first question is probably, “What are spooky stocks?”

Spooky stocks are stocks that freak you out. They can have huge price swings of 10% or more in a day.

Stocks are volatile in nature. However, some have higher tendencies of frightening you; for example, consider stocks whose share prices are highly influenced by volatility in commodity prices.

So, instead of tricking yourself into buying highly volatile stocks in the hopes of booking quick gains, I challenge you to treat yourself to stable, profitable businesses that you can hopefully hold on to for many Halloweens to come.

Believe me. By employing the latter strategy, you’ll save yourself lots of trading fees and will avoid having to watch stock prices like a hawk.

Sleep well on Halloween night with this solid and discounted dividend stock in your portfolio.

Brookfield Property Partners LP (TSX:BPY.UN)(NYSE:BPY) owns, develops, and operates a quality real estate portfolio which is diversified across the globe. The company has assets in Canada, the United States, Brazil, the United Kingdom, Europe, Australia, China, and India.

The firm has 80% of its balance sheet in its core office and retail portfolio across 149 premier office properties and 128 retail properties. These assets establish a strong foundation to support its appetizing cash distribution.

Furthermore, it has 20% of its balance sheet in opportunistic investments that range from multifamily units to student housing to self-storage assets. These high-quality assets are expected to have higher growth potential than its core portfolio.

What makes you sleep well at night?

Other than Brookfield Property’s quality portfolio, its safe 5% yield and growing distribution should also help you sleep well at night.

Since 2014 management has hiked the company’s distribution every year. Further, it aims to grow the firm’s distribution by 5-8% per year, which is backed by sustainable cash flows.

Since the company pays a U.S. dollar–denominated distribution, Canadian unitholders will get a raise from a strong U.S. dollar. This applies to the distribution growth and the distribution amount itself.

Moreover, the units are discounted by about 25% from its IFRS value per unit. So, the firm is very likely to repurchase its units for cancellation.

In fact, in mid-August Brookfield Property renewed its 12-month unit-buyback program to repurchase up to 5% of its outstanding units.


If you don’t wish to spook yourself on Halloween (or any other day for that matter), consider discounted Brookfield Property today for a 5% yield and steady price appreciation over time.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Kay Ng owns shares of Brookfield Property Partners.

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