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. During these times, companies such as First Real Estate Investment Trust and Ascendas India Trust 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.
First Real Estate Investment Trust (SGX:AW9U)
AW9U has a sumptuous dividend yield of 6.32% and distributes 94.64% of its earnings to shareholders as dividends , with analysts expecting this ratio in three years to be 103.88%. In the case of AW9U, they have increased their dividend per share from S$0.074 to S$0.086 so in the past 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. First Real Estate Investment Trust’s earnings per share growth of 68.36% outpaced the sg reits industry’s 33.43% average growth rate over the last year. Continue research on First Real Estate Investment Trust here.
Ascendas India Trust (SGX:CY6U)
CY6U has an alluring dividend yield of 5.76% and is distributing 39.42% of earnings as dividends , with analysts expecting the payout in three years to be 88.13%. CY6U’s dividend alone will put you better off than your bank interest, but the company’s yield isn’t only higher than the low risk savings rate. It’s also amongst the market’s top dividend payers. The company recorded earnings growth of 37.47% in the past year, comparing favorably with the sg real estate industry average of 8.22%. Dig deeper into Ascendas India Trust here.
Starhill Global Real Estate Investment Trust (SGX:P40U)
P40U has a great dividend yield of 7.03% and is currently distributing 97.15% of profits to shareholders , and analysts are expecting a 99.50% payout ratio in the next three years. With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that P40U is in the top quartile of market payers. Interested in Starhill Global Real Estate Investment Trust? Find out more here.
For more solid dividend paying companies to add to your portfolio, explore this 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.