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 Hotel Property Investments and Servcorp generate high dividend income to shareholders. I’ve identify the following real estate stocks paying high income, which may increase the value of your portfolio.
Hotel Property Investments (ASX:HPI)
HPI has an alluring dividend yield of 5.88% and distributes 28.95% of its earnings to shareholders as dividends , and analysts are expecting a 96.96% payout ratio in the next three years. HPI’s 5.88% yield puts it in the top quartile of AU payers. The company recorded earnings growth of 64.48% in the past year, comparing favorably with the au reits industry average of -4.47%.
Servcorp Limited (ASX:SRV)
SRV has a sumptuous dividend yield of 4.73% and their current payout ratio is 62.86% . 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.
Carindale Property Trust (ASX:CDP)
CDP has a juicy dividend yield of 5.04% and is distributing 63.52% of earnings as dividends , and analysts are expecting a 105.08% payout ratio in the next three years. CDP’s dividends have increased in the last 10 years, with DPS increasing from $0.2554 to $0.402. The company has been a reliable payer too, not missing a payment during this time. Investors will be glad to know that Carindale Property Trust has kept up a positive annual earnings growth over the past five years of 8.72%.
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.