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The real estate sector performs relatively in-line with the wider economy. Prosperous periods bring about high growth and inflation, leading to strong returns in real estate investments. These factors drive the profitability and cash flows of real estate companies, which in turn steer the dividend payout and yield for investors. During economic growth, these companies provide an opportune time to increase your portfolio income through dividends. Here are my top dividend stocks in the real estate industry that could be valuable additions to your current holdings.
Parkway Life Real Estate Investment Trust (SGX:C2PU)
C2PU has a large dividend yield of 4.85% and the company has a payout ratio of 79.60% , with analysts expecting this ratio in three years to be 100.61%. The company’s dividends per share have risen from S$0.063 to S$0.14 over the last 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Parkway Life Real Estate Investment Trust also reported a strong double digit earnings growth of 10.37% over the past 12 months. Dig deeper into Parkway Life Real Estate Investment Trust here.
Frasers Centrepoint Trust (SGX:J69U)
J69U has an appealing dividend yield of 5.31% and their current payout ratio is 56.64% , with analysts expecting a 94.80% payout in three years. J69U’s dividends have seen an increase over the past 10 years, with payments increasing from S$0.07 to S$0.12 in that time. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Frasers Centrepoint Trust’s earnings per share growth of 56.19% over the past 12 months outpaced the sg reits industry’s average growth rate of 33.43%. Continue research on Frasers Centrepoint Trust here.
CapitaLand Mall Trust (SGX:C38U)
C38U has a great dividend yield of 5.37% and pays out 59.81% of its profit as dividends , with analysts expecting this ratio to be 103.27% in the next three years. Although shareholders may not be happy that the last payment of S$0.11 was lower than its dividend payout of S$0.14 10 years ago, the company has consistently paid a dividend in this period. The company recorded earnings growth of 44.05% in the past year, comparing favorably with the sg reits industry average of 33.43%. Continue research on CapitaLand Mall Trust here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.