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. Here are my top dividend stocks in the real estate industry that could be valuable additions to your current holdings.
HMG/Courtland Properties, Inc. (AMEX:HMG)
HMG has a large dividend yield of 18.08% and has a payout ratio of 52.01% . While there’s been some level of instability in the yield, HMG has overall increased DPS over a 10 year period from US$0 to US$2.50. Comparing HMG/Courtland Properties’s PE ratio against the US REITs industry draws favorable results, with the company’s PE of 2.9 being below that of its industry (19.5). More on HMG/Courtland Properties here.
Tanger Factory Outlet Centers, Inc. (NYSE:SKT)
SKT has an alluring dividend yield of 6.90% and pays out 192.54% of its profit as dividends . The company’s dividends per share have risen from US$0.76 to US$1.40 over the last 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. Analysts are enthusiastic about the company’s future growth, estimating a 34.46% earnings per share increase over the next 12 months. More detail on Tanger Factory Outlet Centers here.
Senior Housing Properties Trust (NASDAQ:SNH)
SNH has a substantial dividend yield of 9.71% and is paying out 105.39% of profits as dividends . SNH’s DPS have risen to US$1.56 from US$1.40 over a 10 year period. They have been dependable too, not missing a single payment in this time. Senior Housing Properties Trust’s earnings per share growth of 147.21% outpaced the us reits industry’s 15.59% average growth rate over the last year. More detail on Senior Housing Properties Trust 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.