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. I’ve made a list of other value-adding dividend-paying stocks in the real estate industry for you to consider for your investment portfolio.
Property For Industry Limited (NZSE:PFI)
PFI has a great dividend yield of 4.54% and their payout ratio stands at 66.25% , and analysts are expecting the payout ratio in three years to hit 90.19%. PFI has increased its dividend from NZ$0.071 to NZ$0.075 over the past 10 years. To the enjoyment of shareholders, the company hasn’t missed a payment during this period. Over the last five years, the company has experienced a positive earnings per share growth, averaging 7.61%. More on Property For Industry here.
Argosy Property Limited (NZSE:ARG)
ARG has a large dividend yield of 6.11% and is paying out 70.55% of profits as dividends , with analysts expecting a 91.54% payout in three years. 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 6.11% yield places it amidst the market’s top dividend payers. Argosy Property has been a strong performer over the last five years, with the company averaging double digit earnings growth of 20.21% during this time. Interested in Argosy Property? Find out more here.
Vital Healthcare Property Trust (NZSE:VHP)
VHP has a sumptuous dividend yield of 4.17% and is distributing 16.25% of earnings as dividends , and analysts are expecting the payout ratio in three years to hit 64.41%. The company’s DPS have increased from NZ$0.076 to NZ$0.085 over the last 10 years. They have been consistent too, not missing a payment during this 10 year period. Vital Healthcare Property Trust’s earnings growth over the past 12 months has exceeded the nz reits industry, with the company reporting an EPS growth of 116.87% while the industry totaled -23.29%. More on Vital Healthcare Property Trust here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.