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Why Dream Global Real Estate Investment Trust (TSE:DRG.UN) Could Have A Place In Your Portfolio

I’ve been keeping an eye on Dream Global Real Estate Investment Trust (TSE:DRG.UN) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe DRG.UN has a lot to offer. Basically, it is a well-regarded dividend payer with a a great track record of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Dream Global Real Estate Investment Trust here.

Good value with proven track record and pays a dividend

Over the past few years, DRG.UN has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did DRG.UN outperformed its past performance, its growth also surpassed the REITs industry expansion, which generated a 80.2% earnings growth. This is an notable feat for the company. DRG.UN’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of DRG.UN’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, DRG.UN’s share price is trading below the group’s average. This bolsters the proposition that DRG.UN’s price is currently discounted.

TSX:DRG.UN Income Statement Export September 25th 18
TSX:DRG.UN Income Statement Export September 25th 18

DRG.UN’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

TSX:DRG.UN Historical Dividend Yield September 25th 18
TSX:DRG.UN Historical Dividend Yield September 25th 18

Next Steps:

For Dream Global Real Estate Investment Trust, I’ve compiled three pertinent aspects you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for DRG.UN’s future growth? Take a look at our free research report of analyst consensus for DRG.UN’s outlook.

  2. Financial Health: Are DRG.UN’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DRG.UN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.