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. Today I will share with you my list of high-dividend real estate stocks you should consider for your portfolio.
Precinct Properties New Zealand Limited (NZSE:PCT)
PCT has a juicy dividend yield of 4.43% and the company currently pays out 41.84% of its profits as dividends , with analysts expecting a 90.28% payout in the next three years. Although shareholders haven’t seen an increase in DPS in 10 years, the company has been reliable and hasn’t missed a payment, which is what you want from a dividend payer. Precinct Properties New Zealand’s earnings per share growth of 17.29% outpaced the nz reits industry’s -20.50% average growth rate over the last year. Continue research on Precinct Properties New Zealand here.
Goodman Property Trust (NZSE:GMT)
GMT has an alluring dividend yield of 5.12% and the company has a payout ratio of 46.04% , with an expected payout of 85.54% in three years. GMT is among the markets top 25% of dividend payers, which is certainly enticing for interested investors. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the NZ REITs industry. Goodman Property Trust’s PE ratio is 9 while its industry average is 9.6. Interested in Goodman Property Trust? Find out more here.
Kiwi Property Group Limited (NZSE:KPG)
KPG has an appealing dividend yield of 5.25% and their payout ratio stands at 61.98% , with the expected payout in three years being 92.47%. Even though dividends per share have dropped over the last 10, I’d argue that this is tolerable given the fact that they haven’t missed a payment in this time, and dividend hunters are after reliability. Kiwi Property Group has been a strong performer over the last five years, with the company averaging double digit earnings growth of 19.69% during this time. Continue research on Kiwi Property Group 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.