Parkway Life Real Estate Investment Trust (SGX:C2PU) Is A Real Dividend Rock Star - Here Is Why

If you are an income investor, then Parkway Life Real Estate Investment Trust (SGX:C2PU) should be on your radar. Parkway Life Real Estate Investment Trust (“PLife REIT”) is one of Asia’s largest listed healthcare REITs by asset size. Over the past 10 years, the SGD1.82B market cap company has been growing its dividend payments, from SGD0.06 to SGD0.12. Currently yielding 4.04%, let's take a closer look at Parkway Life Real Estate Investment Trust's dividend profile. View our latest analysis for Parkway Life Real Estate Investment Trust

What Is A Dividend Rock Star?

It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically:

Its annual yield is among the top 25% of dividend payers

It consistently pays out dividend without missing a payment or significantly cutting payout

Its dividend per share amount has increased over the past

It is able to pay the current rate of dividends from its earnings

It is able to continue to payout at the current rate in the future

High Yield And Dependable

The company's dividend yield stands at 4.04%, which is on the low-side for REITs stocks. But the real reason Parkway Life Real Estate Investment Trust stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.

If there is one thing that you want to be reliable in your life, it's dividend stocks and their constant income stream. C2PU has increased its DPS from SGD0.06 to SGD0.12 in the past 10 years. It has also been paying out dividend consistently during this time, as you'd expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. The current trailing twelve-month payout ratio for the stock is 79.85%, which is rather low compared to other REITs. Generally, REITs are expected to pay out the majority of its earnings to provide a regular income stream for their investors. In the near future, analysts are predicting a higher payout ratio of 98.14%, leading to a dividend yield of 4.23%. However, EPS is forecasted to fall to SGD0.13 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. This also brings about uncertainty around the sustainability of the payout ratio.

Next Steps:

With Parkway Life Real Estate Investment Trust producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward. However, given this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I've put together three pertinent factors you should further examine:

• 1. Future Outlook: What are well-informed industry analysts predicting for C2PU’s future growth? Take a look at our free research report of analyst consensus for C2PU’s outlook.
• 2. Valuation: What is C2PU worth today? Even if the stock is a cash cow, it's not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether C2PU is currently mispriced by the market.
• 3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.