Westfield Corp (ASX: WFD) has been a solid performer since its inception onto the ASX in late June with its shares up 12% at $7.51. In the same period of time, the benchmark S&P/ASX 200 (INDEXASX: XJO) has risen just 3.6%.
The company, which was created as a result of the Westfield restructure, now owns and manages all of Westfield's shopping centres with the exception of those located in New Zealand and Australia, which are managed by Scentre Group (ASX: SCG).
Here are five solid reasons Westfield Corp could make for an excellent addition to your portfolio today…
- Recovery. Recent comments from the Bank of England boss suggested that Britain's economy was now "more than half way" to a full recovery while the US recovery is also coming along nicely. Given Westfield Corp's heavy exposure to both economies, it is in a prime position to benefit as consumer and business confidence continue to improve.
- Management. You should never underestimate the power of a quality management team. The Lowy family remains in charge of Westfield Corp and should oversee strong growth in the coming years.
- Growth. Speaking of growth, Westfield Corp is by no means restricted to the UK and US. There is certainly potential for them to expand through Europe and South America, particularly now they don't have to focus on the Australian and New Zealand markets.
- Strength. One of the primary aims of the group is to continue strengthening its balance sheet by focusing on iconic shopping centres in some of the world's major cities. For example, it is developing its Westfield London and New York's World Trade Centre malls, which are promising to be two of its most profitable shopping centres.
- Dividends. Not only is Westfield Corp tipped to distribute US24.6 cents per share to shareholders in FY14, investors will also benefit when the Aussie dollar drops. Currently, US24.6 cents translates to 26 Australian cents, giving Westfield Corp a yield of 3.5%.
An even better bet than Westfield.
With many of Australia's other blue chip corporations are considered to be heavily overpriced, Westfield Corp is a good option to help add stability and income to your portfolio. However, there is another ASX stock which may be an even stronger buy today…
