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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. I’ve identify the following real estate stocks paying high income, which may increase the value of your portfolio.
Servcorp Limited (ASX:SRV)
SRV has an appealing dividend yield of 4.83% and is paying out 62.86% of profits as dividends . Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. More detail on Servcorp here.
Arena REIT (ASX:ARF)
ARF has a juicy dividend yield of 5.85% and has a payout ratio of 28.96% , with analysts expecting a 97.06% payout in the next three years. Besides capital gain prospects, just the yield is higher than the low risk savings rate – enticing for investors with goals of beating their bank accounts. Plus, a 5.85% yield places it amidst the market’s top dividend payers. Arena REIT’s performance over the last 12 months beat the au reits industry, with the company reporting 33.28% EPS growth compared to its industry’s figure of 10.62%. More detail on Arena REIT here.
Centuria Industrial REIT (ASX:CIP)
CIP has a juicy dividend yield of 8.47% and pays out 63.44% of its profit as dividends , with analysts expecting a 95.75% payout in the next three years. Besides the potential capital gains, CIP’s yield alone is better than the low risk savings rate. Plus, a 8.47% yield places it amidst the market’s top dividend payers. The company has performed strongly in the last 5 years, growing its earnings by 19.53% in this time. Continue research on Centuria Industrial REIT here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our 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.