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Why I bought Scentre Group (ASX:SCG) shares

Who is Scentre Group

Scentre Group is a Real Estate Investment Trust (REIT) who own all of the Westfield supermarkets in Australia and derive income from renting the stores in the Westfield shopping centres, Scentre Group offer an attractive 5.71% dividend yield.

As Scentre Group is a real estate trust the income isn't too impacted by poor performance in the retail sector, after all, shops still need to pay rent, for this reason I feel that Scentre Group is a fairly safe bet with a high yield dividend payout.

Here are a couple more reasons I decided to buy Scentre Group shares.

  1. Scentre Group shares are trading just below value
  2. Dividend yield of 5.71%
  3. Scentre Group is in the top 25% of dividend payers in Australia (5.6%)
  4. Retail stores will always need to pay rent regardless of an underperforming sector.
  5. Portfolio diversification
  6. Franking at 30% is a little disappointing but better than 0%

As I continue my investment journey and build my stockpicking toolbelt these analysis articles will continue to become more detailed so stay tuned to the blog.

Scentre Group's dividend


At the time of consideration Scentre Group pays a 5.71% or 23 cents per share dividend, now with an investment of $1500 that nets you about $90, compare that to my bank account that currently pays 1.6% pa or $24 with $1500 in savings.

Scentre Group currently has a payout ratio of 87% and it's future cash flow value more than covers future dividend payouts.



Those are my thoughts on Scentre Group, if you have any thoughts on Scentre Group shares feel free to leave a comment below.

Please note that this article should not be considered as investment advice, you can read the full disclaimer at our Site Disclaimer Page.

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