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 Safestore Holdings and NewRiver REIT 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.
Safestore Holdings plc (LSE:SAFE)
SAFE has a nice dividend yield of 2.61% and is currently distributing 25.45% of profits to shareholders , with analysts expecting this ratio to be 59.55% in the next three years. SAFE has increased its dividend from £0.03 to £0.1165 over the past 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. Safestore Holdings’s earnings per share growth of 6.24% over the past 12 months outpaced the gb equity real estate investment trusts (reits) industry’s average growth rate of -21.58%.
NewRiver REIT plc (LSE:NRR)
NRR has a large dividend yield of 13.22% and is distributing 87.00% of earnings as dividends , with analysts expecting this ratio in three years to be 97.98%. 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 13.22% yield places it amidst the market’s top dividend payers.
CLS Holdings plc (LSE:CLI)
CLI has a great dividend yield of 18.81% and is paying out 18.95% of profits as dividends , with analysts expecting this ratio to be 53.37% in the next three years. Despite some volatility in the yield, DPS has risen in the last 10 years from £0.0183 to £0.4205. CLS Holdings’s performance over the last 12 months beat the gb real estate management and development industry, with the company reporting 84.72% EPS growth compared to its industry’s figure of -5.23%.
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.