Dividends are huge, on a normal payout ratio too. One thing to remember is that with property stocks you're not actually getting a dividend, you're getting interest, so it'll be taxed at your marginal rate. Here's the longest term graph I could get:
How do they determine that it is interest when it is paid as divis?? Do they not take the divi tax directly?? are you suppose to declare it as interest in your tax return??
Also, not sure what that graph was showing 
... mind explaining your point??
Some clarification.
In the past one needed to draw a distinction between those listed property companies that were designated Property Loan Stock companies (PLS's), like Growthpoint, and Property Unit Trust companies (PUT's), like SAC.
The PUT's distributed all their earnings as interest, i.e. fully taxable, just like interest from a fixed deposit etc.
The PLS's distributed their earnings in the form of debenture interest plus dividends, usually in the ratio of 1000 to 1.
So, R1000 would be declared as interest and R1 as local dividends in your tax return (subject to withholding tax).
Now we have a slightly different scenario due to the introduction of the internationally recognised and accepted REIT (Real Estate Investment Trust)
structure. PLS's and PUT's will be placed on the same footing under this
all equity REIT structure.
This means that the full income distribution received by
shareholders will be in the form of a taxable dividend, without withholding tax being imposed.
In other words, although the distribution is termed 'dividend' it is in fact interest and will be regarded by SARS as 'rental income' being fully taxable.
The change to the REIT structure will therefore not have an impact on you as an investor when compared to pre-REIT.
The benefits go to those listed property companies that have applied for REIT status, as they will no longer be subjected to CGT when disposing of properties in their portfolios.
