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. Here are my top dividend stocks in the real estate industry that could be valuable additions to your current holdings.
Hersha Hospitality Trust (NYSE:HT)
HT has a great dividend yield of 6.25% and is paying out 51.49% of profits as dividends . While HT have continued to pay a dividend, there has been no increase in the past 10 years. When we compare Hersha Hospitality Trust’s PE ratio with its industry, the company appears favorable. The US REITs industry’s average ratio of 30.4 is above that of Hersha Hospitality Trust’s (8.2). More detail on Hersha Hospitality Trust here.
Universal Health Realty Income Trust (NYSE:UHT)
UHT has a good dividend yield of 3.95% and is paying out 81.23% of profits as dividends . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $2.32 to $2.66. It should comfort existing and potential future shareholders to know that UHT hasn’t missed a payment during this time. The company outperformed the us reits industry’s earnings growth of -4.68%, reporting an EPS growth of 157.00% over the past 12 months. Continue research on Universal Health Realty Income Trust here.
InfraREIT, Inc. (REIT) (NYSE:HIFR)
HIFR has a enticing dividend yield of 5.62% and distributes 86.56% of its earnings to shareholders as dividends , and analysts are expecting the payout ratio in three years to hit 92.84%. HIFR’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. InfraREIT (REIT)’s performance over the last 12 months beat the us reits industry, with the company reporting 1.62% EPS growth compared to its industry’s figure of -4.68%. Interested in InfraREIT (REIT)? Find out more 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.