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2 REITs to boost your ASX dividend income today

Sebastian Bowen
Income

ASX dividend shares are some of the best yielding stocks in the world – especially when you combine them with the franking credits that often come attached.

But ultra-low interest rates that Australia has had for the past year or two have pushed the share prices of many formerly high-yielding ASX dividend shares so high that the yields they’re now offering are at all-time lows.

Just look at the famous blue-chip Woolworths Group Ltd (ASX: WOW). Far from being a dividend heavyweight, it currently offers investors a paltry dividend yield of just 2.37%.

That’s why I think REITs (Real Estate Investment Trusts) are a great place to find ASX dividend income these days. Here are two that offer generous shareholder payments on current prices.

Stockland Corporation Ltd (ASX: SGP)

Stockland is a diversified company that owns and operates a wide variety of properties across different sectors. From shopping centres and housing estates to business parks and retirement homes, Stockland has its fingers in many different pies. Therefore, I think it’s one of the most diversified REITs out there and thus, a well-rounded investment for obtaining a solid stream of dividend income.

Today, Stockland shares offer a yield on cost of 5.49% – and that’s despite the Stockland share price appreciating around 33% over the past year. As a result, I think this company is a rock-solid buy for dividend income today.

Scentre Group (ASX: SCG)

Scentre is another REIT I think would make a great addition to any income-focused portfolio today. This REIT owns and operates the Westfield-branded chain of shopping centres across Australia and New Zealand.

Everyone knows the struggles that traditional brick-and-mortar stores are facing these days in an Amazon-dominated world. But I think Scentre has been adapting very well by focusing on more ‘experience’ related attraction in its malls like dining and cinemas that are more difficult to disrupt. Thus, I think Scentre has a bright future ahead of it and will continue to profit from the famous Westfield name.

Today, Scentre shares offer a trailing yield of 5.86%, which is an attractive return on our cash in today’s market. Thus, I would happily have Scentre as a part of a well-diversified dividend portfolio, especially with the current share price.

Foolish takeaway

From looking at these two REITs, I see two solid income stocks that are somewhat unappreciated by the market at the present time. REITs carry their own risks (as does any investment), but I think including these kinds of income stocks in your portfolio would be beneficial for any income-focused investor in the current market environment.

The post 2 REITs to boost your ASX dividend income today appeared first on Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020