Dividend Investing Might Be Making A Comeback!

Looking to add some reliable income and stability to your portfolio? Recently, MarketWatch has a new article, mentioning that dividend stocks can help to lower the overall risk of our investment portfolio. And many of these dividend stocks are now trading at a significant discount, because of current market situation; the high inflation and high-interest rate environment.

Over here in Singapore's REITs market, there are many S-REITs looking very attractive based on their valuation. Some of the stronger S-REITs are trading at a significant discount, as much as 20% below book value.  And for the dividends yield? Ranging from 5.5% to 7.5% based on current share prices!

Using REITsavvy screener, we can look for Mid & Large Market-Cap size S-REITs that are trading below valuation and yet giving a decent amount of yield.

• $2 billion market cap size and above (Mid and Large Cap)
• Price to Net Asset Value (P/NAV) ratio below < 1 (Trading below NAV)

We will have 10 REITs filtered (sorted based on Market-cap), among the 38 S-REITs that REITsavvy tracks.

 

And looking at this 10 S-REITs, we can see a good diverse of S-REITs across various sectors, trading below 1.0 P/NAV (Price to Net Asset Value) and also giving very decent yield.

• TTM Yield range from 5.5% by Capitaland Integrated Commercial Trust to 9.2% by ESR-LOGOS REIT.
• P/NAV range from 0.51 by Suntec REIT to 0.96 by Mapletree Logistics Trust.

 

With Fixed Deposits and Singapore Savings Bonds and Treasury Bills, a hot topic among Singaporeans over the last few years ever since the pandemic outbreak, some of these deposits and bills might be maturing, and many are seeking higher returns.

 

S-REITs could be an alternative solution. As shown with the table and chart above, S-REITs are trading at a discount and boast attractive dividend yields.

 

Note: The above analysis is NOT buy or sell recommendations of REITsavvy. Investors will need to do their own due diligence when it comes to investing their portfolio.