In 3Q 2018, I decided on many things in the non-REIT space and this will be the first in a series of blogs on my decisions.
Several times in 3Q 2018, I managed to add to my investment in Centurion as its price declined closer to 40c a share.
It is my belief that a DPS of 2c a share is sustainable because it represents a payout ratio of only around 50%.
Centurions’s cash flow also remains strong and relatively predictable.
An almost 5% dividend yield from a business run by a savvy management with a good track record is comforting.
Throw in a strong potential to grow further and the investment is even more attractive to me.
Then, plus a big discount to NAV, at closer to 40c a piece, Centurion became a very compelling investment for both income and growth to me …