Real Estate Dividend Stocks Investors Love
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 Stewart & Wight and LSL Property Services generate high dividend income to shareholders. Today I will share with you my list of high-dividend real estate stocks you should consider for your portfolio.
Stewart & Wight plc (LSE:STE)
STE has a sumptuous dividend yield of 4.67% and pays 44.56% of it’s earnings as dividends . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from £0.195 to £0.245 over the past 10 years. When we compare Stewart & Wight’s PE ratio with its industry, the company appears favorable. The GB Real Estate industry’s average ratio of 11.9 is above that of Stewart & Wight’s (9.5). More on Stewart & Wight here.
LSL Property Services Plc (LSE:LSL)
LSL has a decent dividend yield of 3.77% and their payout ratio stands at 19.35% , and analysts are expecting the payout ratio in three years to hit 39.66%. Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from £0.06 to £0.103 over the past 10 years. LSL Property Services’s performance over the last 12 months beat the gb real estate industry, with the company reporting 70.39% EPS growth compared to its industry’s figure of 5.04%. Interested in LSL Property Services? Find out more here.
A & J Mucklow Group Plc (LSE:MKLW)
MKLW has a substantial dividend yield of 4.33% and is paying out 47.30% of profits as dividends , and analysts are expecting the payout ratio in three years to hit 91.66%. MKLW’s dividends have seen an increase over the past 10 years, with payments increasing from £0.1473 to £0.2212 in that time. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. A & J Mucklow Group’s earnings per share growth of 17.46% over the past 12 months outpaced the gb reits industry’s average growth rate of -10.80%. More on A & J Mucklow 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.
