Skip to main content

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.

Comments

Popular posts from this blog

Ethereum Faucets

ETH Faucets Claim your free Etherium coins from the faucets listed below, CryptoAuthority has complete lists of hundreds of faucets that you can access online, or on your Smartphone. Faucet Minimum Maximum Time Payout Method Platform Working Freether - - 3 Direct Android Yes Earncrypto ~0.000060 per point earned - N/A Direct Web Yes Etherium Farm - - 5 Direct Android Yes ETH Reward - - 5 Direct Android Yes EtherDrips - - - Direct Android Unverified Etherium Faucet Info 0.000001 0.001 60 Direct Web Yes SwissAdsPaysEth 0.00000180 0.00184320 60 Direct Web Yes Fourumcoin Etherium Faucet - - - Direct Web Yes MulticoinFaucet - ...

Why I bought Westpac (ASX:WBC) shares

I now own my very first shares woohoo! As I have only just started investing in the share market and learning about share investing, owning my very first shares is exciting. Owning shares in big banks is a pretty reliable income generator, all of the big banks pay dividends to their shareholders and in many cases the dividends payout is at a higher rate than if you had savings accounts with them. Westpac was a choice for me over the other major Banks for a couple of reasons at the time of my decision. Westpac was not over valued, looking at many of the other major Banks there prices appeared to be overvalued, Westpac was the one bank share that appeared about right, ofcourse lower is always nicer.  Valuation of Westpac shares from the Simply Wallstreet site Dividend yield (I'll talk more about this in a sec) Westpac is in the top 25% of dividend payers in Australia (5.6%) Banking industry is a necessity and is not going anywhere anytime soon. Westpac's w...

Why I bought Rural Funds Group shares

Rural Funds Group is a Real Estate Investment Trust (REIT) who own a diversified portfolio of agricultural assets in Australia and derive income from leasing those assets to experienced agricultural operators, Rural Funds Group offer an attractive 6.13% dividend yield. As Rural Funds Group is a real estate trust their income shouldn't be too impacted by poor performance in the agricultural sector, as tenants still need to pay rent, for this reason I feel that Rural Funds Group is a fairly safe bet with a high yield dividend payout. Here are a couple more reasons I decided to buy Rural Funds Group shares. RFF shares are trading at an almost 30% discount from its year high at $2.42 Dividend yield of 6.13% RFF has recently increased its dividend Rural Funds Group is in the top 25% of dividend payers in Australia (5.6%) Stable management with the average tenure of 9.6 years Tenants still need to pay rent regardless of an underperforming sector. Som...