As investors will know, dividends are an important consideration when investing in shares. They can provide investors with a relatively stable part of their returns through the delivery of real cash flow, and tend to be less influenced by market cycles relative to the capital component of an investment.
Macrovue’s investment team have reviewed three top performing companies that could offer Australian investors healthy and sustainable dividends.
Deutsche Pfandbriefbank AG (ETR: PBB)
Deutsche Pfandbriefbank has provided GEG German Estate Group AG with debt financing for the purchase and refurbishment of the landmark "Global Tower" in Frankfurt am Main.
Following extensive refurbishment, the Global Tower will provide a total rental space of around 34,000 square meters over 30 floors. The majority of the space consists of high-quality and variable office space. The renovation work has already started, and completion is scheduled for summer 2020.
Built in 1974 and extended in 1994, the office tower on Frankfurt’s Neue Mainzer Straße was one of the first skyscrapers in Frankfurt and served as headquarters for prominent German bank Commerzbank. GEG German Estate Group based in Frankfurt is one of the major German investment and asset management platforms in the commercial real estate sector.
Deutsche Pfandbriefbank AG has returned +38.53% over the last 12 months (1 August 2017 – 31 July 2018).
The Carlyle Group LP (NASDAQ: CG)
The Carlyle Group LP reported 2Q 2018 earnings on 2 August 2018. Carlyle reported a strong quarter with Q2 EPS (earnings per share) of US$0.56 beating consensus estimates by US$0.05.
Revenues of US$893.6 million far exceeded analysts’ forecasts by US$196.46 million led by robust performance across segments, particularly in Real Assets and Investment Solutions. In addition, Carlyle is also making solid progress in further building out its credit business by adding insurance assets through a deal with DSA Re.
Carlyle is acquiring a 19.9% stake in DSA Re, a reinsurance company which is part of AIG, with an upfront cash payment of US$381 million and additional US$95 million in 5 years. With the deal, Carlyle is going to manage some $6 billion assets with roughly 40% expected to be invested in credit and remainder in other products.
The Carlyle Group LP has returned +36.10% over the last 12 months (1 August 2017 – 31 July 2018).
Starwood Property Trust Inc (NYSE: STWD)
Starwood Property Trust reported 2Q FY 2018 earnings on 9 August. Earnings per share of US $0.54 beat consensus by US$0.01. Revenue of US$269.56 million (+27.4% year-on-year) exceeded analyst estimates by US$11.68 million.
STWD is agreeing to buy (somewhat surprisingly) GE Capital's Energy Financial Services' project finance debt business and loan portfolio for US$2.56 billion, including US$400 million of unfunded loan commitments. Starwood management has stated that this acquisition is a diversifying play for the company and will be accretive to earnings.
The GE unit is attractive because its holdings are comprised almost entirely of floating-rate loans, which are favoured in an environment of rising interest rates. The business is expected to create new loans with an average duration exceeding five years - at least twice that of the typical debt in Starwood’s commercial real estate portfolio. Starwood also said the unit would complement its Starwood Energy Group, founded in 2005, which makes energy infrastructure investments.
Starwood Property Trust, Inc has returned +20.77% over the last 12 months (1 August 2017 – 31 July 2018).
Own shares in these companies through Macrovue’s International High Dividend Vue.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual and does not constitute financial advice. Consider the appropriateness of the information in regards to your circumstances.
Past performance is not a reliable indicator of previous performance.