Any time a dividend stock’s paying close to 10% in dividends, it’s worth taking a closer look. Inovalis Real Estate Investment Trust (TSX:INO.UN) currently pays its shareholders a monthly dividend of $0.06875, or $0.825 for the full year. And with the stock closing at $8.21 on Friday, that’s slightly more than 10% of its share price.
Unlike many other real estate investment trusts (REITs) on the TSX, Inovalis’ focus is on the European market, particularly Germany and France.
On August 12, Inovalis released its second-quarter results for the period ending June 30 and it said that its tenants “are paying their rent in a timely way despite the onset of disruptions to business caused by the pandemic crisis since the end of Q1.”
Its net rental income for the quarter was $7.4 million and up 10% year over year.
However, that was mainly a result of boost the REIT got from an acquisition. But with Inovalis reporting “near-normal quarterly rent collection for Q2” there don’t appear to be any concerns right now that the business is in trouble. However, with COVID-19 still wreaking havoc all over the world, that doesn’t mean things won’t change in the future.
On August 17, Inovalis announced its distributions for August and September, which will remain at $0.06875.
Shares of Inovalis have fallen 21% in 2020 and that’s pushed its dividend yield up. Right now, it’s still too early to tell if the REIT is in trouble and if dividend payments may be in danger. At the very least, it’s a stock that investors should keep a close eye on.
