Please read the disclaimer at the bottom of my blog if you wish to continue with the contents below.
 |
| Collated using Shareinvestor |
A Dividend Aristocrat is a term used to describe a company that continuously raises its dividend payout year on year for shareholders. Typically with a time line of about 25 years. For the sake of easy reference, I reduce my time line to five years and filtered all reits in SGX to DPS CAGR of 5 years. This metric tells us the annual growth rate in dividend per share over a five years period(computed to a steady rate).
I added two more criteria: Net debt to equity less than 0.5x and Dividend yield more than 5%. As we do not want high net debt or low div payout counters that does that. The result showed 7 reits with positive DPS CAGR of 5 years. Three reits were left after the two criteria are taken into account: Fraser Cpt Tr, AIMSAMP Cap Reit and CDL Htrust.
Fraser Cpt Tr distribution table:
AIMSAMP Cap Reit distribution table:
CDL HTrust distribution table:
Coincidentally all three are either trading below or close to their book value. Above are the three reits' distribution tables. It is realistic to note that the growth are not incremental every year, as CAGR takes into account the ending and beginning value only.
Did you factor in reits which have issued more shares to raise money? Therefore diluted existing shareholders. I know Keppel reits likes to do that.
ReplyDeleteYou might want to check out first REIT too. They have been raising their div since ipo.
Hi Amos, First reit didnt show up as positive because the starting value is from 2009 and then ending value is from 2013(2014 DPU is not over yet)
DeleteChange in ROE over this five years period can give you a clearer picture of the profitability amidst rights isse.
Delete