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. If you’re a buy-and-hold investor, these healthy dividend stocks in the real estate industry can generously contribute to your monthly portfolio income.
Wynnstay Properties Plc (AIM:WSP)
WSP has a good dividend yield of 2.63% and is currently distributing 15.37% of profits to shareholders . WSP has increased its dividend from £0.0905 to £0.1575 over the past 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Wynnstay Properties’s earnings per share growth of 55.69% over the past 12 months outpaced the gb real estate industry’s average growth rate of 29.88%.
Highcroft Investments Plc (LSE:HCFT)
HCFT has an appealing dividend yield of 4.62% and their payout ratio stands at 45.98% . HCFT’s dividends have seen an increase over the past 10 years, with payments increasing from £0.14 to £0.41 in that time. The company has been a reliable payer too, not missing a payment during this time. The company has a lower PE ratio than the GB REITs industry, which interested investors would be happy to see. The company’s PE is currently 9.7 while the industry is sitting higher at 10.9.
First Property Group plc (AIM:FPO)
FPO has a solid dividend yield of 3.20% and their payout ratio stands at 21.81% . FPO’s dividends have increased in the last 10 years, with DPS increasing from £0.003 to £0.0157. The company has been a reliable payer too, not missing a payment during this time. First Property Group’s earnings growth over the past 12 months has exceeded the gb real estate industry, with the company reporting an EPS growth of 88.02% while the industry totaled 29.88%.
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.