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Performance in the real estate sector generally tracks the economic cycle. During periods of high growth and inflation, real estate investments usually post strong returns. However, during an economic bust, these investments tend to underperform. 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. Below is my list of huge dividend-paying stocks in the real estate industry that continues to add value to my portfolio holdings.
First Real Estate Investment Trust (SGX:AW9U)
AW9U has a sumptuous dividend yield of 6.42% and distributes 95.05% of its earnings to shareholders as dividends , with analysts expecting this ratio in three years to be 103.43%. AW9U’s DPS have risen to S$0.086 from S$0.07 over a 10 year period. The company has been a reliable payer too, not missing a payment during this time. First Real Estate Investment Trust’s performance over the last 12 months beat the sg reits industry, with the company reporting 81.01% EPS growth compared to its industry’s figure of 14.87%. Interested in First Real Estate Investment Trust? Find out more here.
CapitaLand Retail China Trust (SGX:AU8U)
AU8U has an appealing dividend yield of 6.56% and pays out 62.32% of its profit as dividends , with the expected payout in three years being 107.29%. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from S$0.067 to S$0.10. CapitaLand Retail China Trust’s performance over the last 12 months beat the sg reits industry, with the company reporting 35.72% EPS growth compared to its industry’s figure of 14.87%. More detail on CapitaLand Retail China Trust here.
Starhill Global Real Estate Investment Trust (SGX:P40U)
P40U has an alluring dividend yield of 6.79% and the company currently pays out 97.43% of its profits as dividends . P40U’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. More detail on Starhill Global Real Estate Investment 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.