Frasers Centrepoint Trust (SGX:J69U) is a true Dividend Rock Star. Its yield of 5.20% makes it one of the market’s top dividend payer. In the past ten years, Frasers Centrepoint Trust has also grown its dividend from 0.07 to 0.12. Below, I have outlined more attractive dividend aspects for Frasers Centrepoint Trust for income investors who may be interested in new dividend stocks for their portfolio. Check out our latest analysis for Frasers Centrepoint Trust

What Is A Dividend Rock Star?

It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: Its annual yield is among the top 25% of dividend payers It consistently pays out dividend without missing a payment or significantly cutting payout Its dividend per share amount has increased over the past It is able to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future

High Yield And Dependable

Frasers Centrepoint Trust currently yields 5.20%, which is on the low-side for equity real estate investment trusts (reits) stocks. But the real reason Frasers Centrepoint Trust stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. J69U has increased its DPS from SGD0.07 to SGD0.12 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes J69U a true dividend rockstar. Frasers Centrepoint Trust has a payout ratio of 56.55%, which is rather low compared to other REITs. Generally, REITs are expected to pay out the majority of its earnings to provide a regular income stream for their investors. Going forward, analysts expect J69U’s payout to increase to 92.46% of its earnings, which leads to a dividend yield of around 5.51%. However, EPS is forecasted to fall to SGD0.13 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. This also brings about uncertainty around the sustainability of the payout ratio.

Next Steps:

Frasers Centrepoint Trust’s strong dividend attributes make it, without a doubt, a stock dividend investors should be considering for their portfolios. However, given this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three relevant factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for J69U’s future growth? Take a look at our free research report of analyst consensus for J69U’s outlook.

2. Valuation: What is J69U worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether J69U is currently mispriced by the market.

3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.