Recent Purchase: Plaza Retail REIT (TSE: PLZ.UN)

Plaza Retail REIT

Good evening fellow investors and would-be investors,

On  Friday I purchased shares in another REIT in my TFSA: Plaza Retail REIT (TSE: PLZ.UN). I bought 260 shares of Plaza Retail REIT at $4.43 each, with the CIBC Investor’s Edge trade fee this purchase comes out to a total investment of $1158.75 – which was all I had in my TFSA at the time.

PLZ.UN pays a 5.64% dividend, which equates to an annual dividend of $0.25 per share. Considering I purchased 260 shares, this means my investment in PLZ.UN will increase my forward twelve month dividend income by $65.00. Considering PLZ.UN is an REIT and pays dividends monthly, I will be receiving $5.42 every month from this company. 

PLZ.UN has raised dividends consecutively for 14 years straight. They have a high dividend yield at 5.64%, while their five-year yield average is 4.93%. The dividend payout ratio is 67.9%, which is below my maximum of 80% but still on the higher end. I believe they can continue to raise the dividends without issue for the foreseeable future.

Another thing I really liked about this purchase is that the book value of PLZ.UN is $4.43, so I am paying exactly what the tangible assets are worth – which puts a neat margin of safety over my purchase.

Plaza Retail REIT has a trailing P/E of 14.3, while the 5-year average is 44.2, which means it is currently trading at a 68% discount in relation to this. It’s also trading at a discount when compared to the five-year averages of Price-to-Sales and forward P/E.

It’s been an exhausting week and while I’d love to go into great detail of Plaza Retail REIT; I promise I’ll write a dividend analysis and link back to this purchase post once I get a chance.

Until then, enjoy the rest of your Sunday!

2 Replies to “Recent Purchase: Plaza Retail REIT (TSE: PLZ.UN)”

  1. Hey Dividend Beginner,

    First of all, welcome to the DGI community!

    Nice buy there. That high yield value sure adds a nice amount of annual dividend. The payout ratio is a bit high as you said, but the yield sure doesn’t hurt you.

    Hope to see more analysis of great value companies at your blog.
    I’m going to add you to my blogroll, in order to keep track of your progress.

    Best wishes,

    1. Hi DFS,

      I’m quite sure that’s the first blogroll I’ve been added to; thank you so much! You definitely will be seeing more analyses for years to come. I’ll be checking out your blog and will add you to my blogroll as well.

      Thanks for commenting,

Leave a Reply

Your email address will not be published.