Top NZSE Real Estate Dividend Payers
/ In the Media
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. 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. Below is my list of huge dividend-paying stocks in the real estate industry that continues to add value to my portfolio holdings.
Augusta Capital Limited (NZSE:AUG)
AUG has a sumptuous dividend yield of 5.29% and is paying out 69.30% of profits as dividends , with the expected payout in three years being 80.93%. AUG’s 5.29% yield puts it in the top quartile of NZ payers. Augusta Capital has had strong and consistent earnings over the last five years, with the company averaging double digit EPS growth of 15.50%. Dig deeper into Augusta Capital here.
Investore Property Limited (NZSE:IPL)
IPL has an appealing dividend yield of 5.37% and distributes 51.99% of its earnings to shareholders as dividends , with analysts expecting this ratio to be 93.14% 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 IPL is in the top quartile of market payers. The company recorded earnings growth of 118.97% in the past year, comparing favorably with the nz reits industry average of -27.52%. Dig deeper into Investore Property here.
Stride Stapled Group (NZSE:SPG)
SPG has a enticing dividend yield of 5.80% and the company currently pays out 85.84% of its profits as dividends , with analysts expecting this ratio in three years to be 94.87%. With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that SPG is in the top quartile of market payers. The company has a lower PE ratio than the NZ REITs industry, which interested investors would be happy to see. The company’s PE is currently 9.8 while the industry is sitting higher at 11.3. Continue research on Stride Stapled Group here.