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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. During these times, companies such as Ho Bee Land and Parkway Life Real Estate Investment Trust generate high dividend income to shareholders. As a long term investor, I favour these real estate stocks with great dividend payments that continues to add value to my portfolio.
Ho Bee Land Limited (SGX:H13)
H13 has a sizeable dividend yield of 3.28% and the company currently pays out 21.98% of its profits as dividends , and analysts are expecting the payout ratio in three years to hit 48.18%. Despite there being some hiccups, dividends per share have increased during the past 10 years. When we compare Ho Bee Land’s PE ratio with its industry, the company appears favorable. The SG Real Estate industry’s average ratio of 9.7 is above that of Ho Bee Land’s (6.7). More on Ho Bee Land here.
Parkway Life Real Estate Investment Trust (SGX:C2PU)
C2PU has an alluring dividend yield of 4.95% and is distributing 79.97% of earnings as dividends , with analysts expecting a 100.05% payout in the next three years. In the case of C2PU, they have increased their dividend per share from S$0.065 to S$0.14 so in the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. Over the past 12 months, C2PU’s ROE of 9.45% outperformed the SG REITs industry, which averaged a 7.25% return. More detail on Parkway Life Real Estate Investment Trust here.
Frasers Centrepoint Trust (SGX:J69U)
J69U has a enticing dividend yield of 5.43% and is currently distributing 56.64% of profits to shareholders , with the expected payout in three years being 101.49%. J69U has increased its dividend from S$0.07 to S$0.12 over the past 10 years. They have been consistent too, not missing a payment during this 10 year period. Frasers Centrepoint Trust’s performance over the last 12 months beat the sg reits industry, with the company reporting 56.19% EPS growth compared to its industry’s figure of 33.43%. Interested in Frasers Centrepoint Trust? Find out more 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.