SA property stocks going for a song
Investors may have a limited window of opportunity to buy SA-focused property stocks at record dividend yields
Though there has been something of a recovery in property share prices in recent weeks after three months of negative returns, the sector is by and large still looking rather cheap. This is particularly true for property stocks that generate all or most of their earnings in SA, with at least a dozen local counters now trading at dividend yields north of 10%. That’s attractive compared with the average 6%-7% that income-dependent investors are getting on cash in the bank, or the just more than 8% on offer from government bonds. In fact, the yield spread between government bonds and SA-focused property stocks is the highest it has been in 20 years, says Bridge Fund Managers chief investment officer Ian Anderson. Despite the 15%-18% recovery recorded in the year to date by the likes of Accelerate Property Fund, Octodec Investments, Emira Property and Indluplace Properties, Anderson says most local property counters still offer significant value relative to bonds and equities. Many are ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.