When it comes to investing in ASX Real Estate Investment Trusts (REITs), most investors come for the income, and, well, stay for the income. REITs are governed by special rules, which means that they can often pay out pre-tax dividend distributions. This can lead to market-leading yields on some ASX REITs (although most don’t come with franking for this very same reason). So let’s check out Stockland Corporation Ltd (ASX: SGP).
Why Stockland? Because, as of this morning, we’ve got some news on Stockland’s own dividend.
Like many ASX REITs and dividend-paying shares, Stockland’s dividends took a beating with the onset of the COVID-19 pandemic. This was a REIT that paid out 27.6 cents per share in dividend distributions in 2019. But 2020 only saw 21.9 cents per share paid out to investors, split into a 10.6 cents per share interim payout and an 11.3 cents per share final distribution.
This year, Stockland has lifted its payments off of those lows. Its June 2021 interim payment came in at 13.3 cents per share, just 0.2 cents lower than the same interim payment from 2019.
So what has Stockland announced this morning? Could its dividend distributions have recovered even more?
Well, Stockland has just announced that its 2021 final dividend distribution will come in at 12 cents per share, to be paid out on 31 December. That will bring its total dividend distributions for 2021 to 25.3 cents per share. That’s well above 2020’s 21.9 cents, but not yet at 2019’s high watermark of 27.6 cents.
Even so, no doubt Stockland shareholders will be pleased with this news. On recent Stockland pricing, that gives this company a forward yield of 5.93%
Stockland share price snapshot
2021 has been a rough year for Stockland. Its shares remain down 0.23% year to date, and 4.9% over the past 12 months. Stockland is even down around 2.3% over the past 5 years. At the latest pricing, the company has a market capitalisation of $10.2 billion.