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3 high dividend paying Industrial trusts

Are you interested in a company paying more than 8% in dividend yield? Then read on to find out more.

Industrial trusts are a sub sector of the traditional property trusts listed on the ASX, but have several advantages over other types of trusts. They generally invest in warehouses, factories and industrial parks, with tenants that tend to be much more stable. After all, once your company has installed all its machinery and equipment, how likely is that you will want to move? Then they also have truck drivers and couriers dropping off and picking items up and would need to consider the effect on their supply chain if they moved.

Here’s three industrial trusts that could be worthy of your attention.

BWP Trust (ASX: BWP). Im pretty sure a vast majority of Australians have been into a Bunnings store. The enormous warehouse-style stores sell everything from Christmas lights, to tools, paint, hardware and plants, and even rolls of grass. The company that owns most of the property those stores sit on is BWP Trust. BWP Trust currently pays a distribution (dividend) yield of 6.6% (unfranked), and dividends are forecast to rise steadily over the next few years.

Australian Industrial REIT (ASX: ANI). Only recently listed, the Australian Industrial REIT holds 8 industrial properties in Sydney and Melbourne, with tenants including Australia Post, VIP Petfoods and Harvey Norman (ASX: HVN). The company is forecasting a distribution yield for the period ending June 30 2014 of 8.25% per year, rising to 8.5% for the 6 months to December 2014. Even better for investors, the shares in the company are trading below the IPO price of $2.00, giving retail investors a leg up on the fund managers.

Industrea REIT (ASX: IDR) is another recent addition to the ASX, and is forecasting a distribution yield of 8.2% (unfranked) for the period to June 30 2014, and 8.4% for the 2015 financial year, based on the offer price of $2.00. Luckily for investors, shares in Industrea are currently trading at around $1.83, and therefore offering a yield much higher than the forecast 8.2%. Industrea’s portfolio includes 18 industrial properties, with tenants including Link Market Services, Australand Holdings (ASX: ALZ) and Queensland Motorways.

Foolish takeaway

With all three industrial trusts offering high distributions (dividends), and two at a discount to their IPO price, now may the perfect time to put your cash to work.

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Motley Fool writer/analyst Mike King owns shares in BWP Trust. You can follow Mike on Twitter @TMFKinga

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