In today’s article, we have shortlisted two SGX-listed companies, Paragon REIT Management Pte Limited (SG:SK6U) and Keppel REIT Management Limited (SG:K71U), which are well-regarded for their high dividend yields. Both companies currently offer dividend yields of above 6%.
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For investors in REITs, the distribution per unit (DPU) is a key metric of interest. The DPU growth has been recently impacted by challenges in broader market conditions. However, the two companies have successfully maintained dividends during tough times, which is an encouraging sign for investors. Moving forward, experts believe these companies are poised for growth, supported by their high-quality asset portfolio and the tourism recovery in the Singapore market.
For investors seeking the right dividend stocks in any particular market, TipRanks offers a range of valuable tools. The Top Dividend Stocks tool allows investors to identify the highest dividend-yielding stocks, while the Dividend Calculator offers a precise method for selecting dividend stocks that align with their investment budget. Additionally, the Dividend Calendar provides essential date-wise information regarding company dividend distributions.
Let’s have a look at these stocks in detail.
Paragon REIT Dividend 2023
Paragon REIT focuses on investing in and managing income-generating real estate assets within the Asia-Pacific region. The company’s portfolio includes The Clementi Mall, The Rail Mall, Paragon, and Westfield Marion Shopping Center, among others.
For the first half of FY23, the company reported a 15.7% decline in its DPU to S$0.0242, down from S$0.0287 in the corresponding period of the previous year. The dividend amount will be paid on September 22 to the shareholders who registered until August 15, 2023.
The REIT’s management attributed the decline in DPU primarily to increased finance costs due to the prevailing high interest rate environment. The available income for distribution contracted by 13.8%, amounting to S$70.6 million in the first-half results of FY23, compared to the previous year’s S$82 million for the same period. The company is bullish on the tourism recovery in the Singapore market, as the number of international visitors saw an impressive year-on-year surge of 320%, reaching a total of 6.3 million in the first half of 2023.
Keppel REIT Dividend 2023
Keppel REIT is a prominent real estate investment trust in Asia. It boasts a diversified portfolio comprising premium commercial properties across the Asian region.
Keppel REIT adheres to a distribution policy that aims to distribute a minimum of 90% of its taxable income for each financial year. The company announced a distribution per unit of S$0.029, which was paid on September 8, 2023. It was 2.4% lower on a year-over-year basis, hit by higher borrowing costs.
In its first half of FY23 results, the company reported numbers in line with expectations. The company’s portfolio in Singapore performed well, driven by strong rental income and occupancy rates. The company’s tenant roster includes government agencies and government-linked companies. This provides it with a safe cushion to withstand economic downturns and uncertainties.
According to TipRanks’ analyst consensus, K71U stock has received a Moderate Buy rating based on a total of five recommendations. It includes three Hold and two Buy ratings from analysts. The Keppel REIT share price target is S$0.98, which is 10.4% higher than the current price.
