What are the REITs that pay the highest dividends in September 2024? With the latest T-Bill paying you only 3.13% per annum, it may be time to consider investments that gives you higher returns such as Singapore REITs. Singapore REITs are a popular investment choice for many investors seeking stable and recurring income.
REITs (Real Estate Investment Trusts), pool funds from multiple investors to invest in a portfolio of income-generating real estate properties. In Singapore, REITs are regulated by the Monetary Authority of Singapore (MAS) and are required to distribute at least 90% of their taxable income to unitholders in the form of dividends. This makes them an attractive option for income-focused investors. Singapore REITs offer exposure to a diverse range of real estate sectors such as retail, office, industrial, and hospitality, providing investors with a way to diversify their portfolio and gain exposure to the Singapore property market.
Last year, I collected a total passive income of more than $16K and I am currently on track to increase my passive income through my purchases in 2024. Besides REITs, I also invest in Singapore Savings Bond and Treasury Bills (T-Bills) but the majority of my passive income comes from the dividends paid out by REITs in my stock portfolio. The important thing is to be able to identify high quality REITs are those that constantly pay you dividends and are able to grow their Distribution Per Unit (DPU) year-on-year.
Why Am I Investing In REITs?
As shared in my previous post on Retire Early in Singapore, investing in REITs is a good way to build up passive income. I wanted the luxury to be able to choose whether to work before the statutory retirement age (Financial Freedom versus Financial Independence). To be able to retire early, it is important to:
- Start planning early, be prudent in your savings and accumulate a larger nest egg for your retirement years.
- Estimate your monthly expenses during your retirement years. (Need versus Wants).
- Build multiple sources of passive income to mitigate against longevity and inflation.
As shared earlier, Singapore REITs are regulated by the Monetary Authority of Singapore (MAS) and are required to distribute at least 90% of their taxable income to unitholders in the form of dividends. Thus, there is no need to worry REITs will not pay out dividends.
How do I screen for REITs that pay the highest dividends?
There are many stock screening tools out there. As such, it is not difficult to obtain a shorter list of good REITs and their current dividend yield for further analyse and decision making. Stock Screening tools allow you to screen REITs based on specific factors like P/E ratio, dividend yield, and other financial metrics.
For me, I use Stocks Café Stock Screener to screen for a list of REITs that meet my predefined criteria so that I have a shorter list of REITs to analyse. Below are the criteria that I used to screen for dividend stocks. You can adjust them to fit your risk appetite.
- Market Capitalization >= 1B
- Current Yield (%) >= 5 and <= 10
- Price / Book <= 3
Reminder: It is important for you to know that you should not buy the stock solely based on the current dividend yield. The screening results quickly gives you a glimpse of the current dividend yields of the REITs that meet the above screen criteria.
After you have a list of REITs, read up their latest financial results or annual reports. There are 6 terms to know as a REIT investor and they should give you an indicator whether the REIT is performing or underperforming.
REITs That Pay the Highest Dividends in September 2024
Below is the list of REITs I screened using Stocks Café Stock Screener sorted from highest current dividend yield to lowest dividend yield.
CapitaLand China Trust (SGX:AU8U)
Market Capitalization: SGD 1.2B
Current Dividend Yield: 8.65%
Price to Equity: 75.409
Price to Book: 0.555
Net Asset Value (NAV): SGD 1.252
Closing Price (30-Aug-24): SGD 0.695
PARAGON REIT (SGX:SK6U)
Market Capitalization: SGD 2.5B
Current Dividend Yield: 7.56%
Price to Equity: 9.965
Price to Book: 0.858
Net Asset Value (NAV): SGD 1.044
Closing Price (30-Aug-24): SGD 0.895
AIMS APAC Reit (SGX:O5RU)
Market Capitalization: SGD 1B
Current Dividend Yield: 7.17%
Price to Equity: 24.882
Price to Book: 0.735
Net Asset Value (NAV): SGD 1.769
Closing Price (30-Aug-24): SGD 1.3
Starhill Global Reit (SGX:P40U)
Market Capitalization: SGD 1.2B
Current Dividend Yield: 7.12%
Price to Equity: 43.478
Price to Book: 0.666
Net Asset Value (NAV): SGD 0.766
Closing Price (30-Aug-24): SGD 0.51
OUE REIT (SGX:TS0U)
Market Capitalization: SGD 1.6B
Current Dividend Yield: 6.79%
Price to Equity: 7.934
Price to Book: 0.483
Net Asset Value (NAV): SGD 0.6
Closing Price (30-Aug-24): SGD 0.29
Lendlease Reit (SGX:JYEU)
Market Capitalization: SGD 1.4B
Current Dividend Yield: 6.61%
Price to Equity: 19.136
Price to Book: 0.623
Net Asset Value (NAV): SGD 0.94
Closing Price (30-Aug-24): SGD 0.585
Keppel Reit (SGX:K71U)
Market Capitalization: SGD 3.4B
Current Dividend Yield: 6.48%
Price to Equity: 27.313
Price to Book: 0.639
Net Asset Value (NAV): SGD 1.378
Closing Price (30-Aug-24): SGD 0.88
Mapletree Logistics Trust (SGX:M44U)
Market Capitalization: SGD 6.8B
Current Dividend Yield: 6.47%
Price to Equity: 23.313
Price to Book: 0.913
Net Asset Value (NAV): SGD 1.49
Closing Price (30-Aug-24): SGD 1.36
Far East Hospitality Trust (SGX:Q5T)
Market Capitalization: SGD 1.3B
Current Dividend Yield: 6.45%
Price to Equity: 10.965
Price to Book: 0.691
Net Asset Value (NAV): SGD 0.926
Closing Price (30-Aug-24): SGD 0.64
Mapletree Pan Asia Commercial Trust (SGX:N2IU)
Market Capitalization: SGD 7.2B
Current Dividend Yield: 6.44%
Price to Equity: 12.562
Price to Book: 0.76
Net Asset Value (NAV): SGD 1.803
Closing Price (30-Aug-24): SGD 1.37
CapitaLand Ascott Trust (SGX:HMN)
Market Capitalization: SGD 3.4B
Current Dividend Yield: 6.20%
Price to Equity: 14.52
Price to Book: 0.727
Net Asset Value (NAV): SGD 1.252
Closing Price (30-Aug-24): SGD 0.91
CDL Hospitality Trust (SGX:J85)
Market Capitalization: SGD 1.2B
Current Dividend Yield: 6.10%
Price to Equity: 9.454
Price to Book: 0.62
Net Asset Value (NAV): SGD 1.508
Closing Price (30-Aug-24): SGD 0.935
Mapletree Industrial Trust (SGX:ME8U)
Market Capitalization: SGD 6.9B
Current Dividend Yield: 5.52%
Price to Equity: 60.181
Price to Book: 1.312
Net Asset Value (NAV): SGD 1.86
Closing Price (30-Aug-24): SGD 2.44
Suntec Reit (SGX:T82U)
Market Capitalization: SGD 3.6B
Current Dividend Yield: 5.45%
Price to Equity: 19.114
Price to Book: 0.554
Net Asset Value (NAV): SGD 2.219
Closing Price (30-Aug-24): SGD 1.23
CapitaLand Ascendas REIT (SGX:A17U)
Market Capitalization: SGD 12.6B
Current Dividend Yield: 5.20%
Price to Equity: 84.014
Price to Book: 1.233
Net Asset Value (NAV): SGD 2.335
Closing Price (30-Aug-24): SGD 2.88
CapitaLand Integrated Commercial Trust (SGX:C38U)
Market Capitalization: SGD 14.3B
Current Dividend Yield: 5.13%
Price to Equity: 17.004
Price to Book: 0.996
Net Asset Value (NAV): SGD 2.13
Closing Price (30-Aug-24): SGD 2.12
Frasers Centrepoint Trust (SGX:J69U)
Market Capitalization: SGD 4.3B
Current Dividend Yield: 5.06%
Price to Equity: 23.238
Price to Book: 1.047
Net Asset Value (NAV): SGD 2.273
Closing Price (30-Aug-24): SGD 2.38