Boost Your Income with These Two Top-Notch Dividend Stocks
Investors seeking reliable income streams and strong total returns often turn to dividend stocks. Historically, dividend-paying companies have outperformed their non-dividend-paying counterparts, with the average dividend stock in the S&P 500 delivering a 9.2% average annual total return over the last 50 years, compared to a 4.3% return for non-payers.
Enbridge: A Dividend-Paying Powerhouse
One standout dividend stock is Enbridge (NYSE: ENB), a Canadian pipeline and utility operator with an impressive 69-year history of paying dividends. The company has consistently grown its payout for 29 consecutive years, offering a generous dividend yield of 6%, well above its 10-year average. Enbridge’s robust total shareholder return, averaging 11% annually since 2004, is a testament to its ability to generate strong returns for investors.
Fueling Future Growth
Enbridge’s growth prospects look promising, with expected annual adjusted EBITDA growth of 7% to 9% through 2026, driven by expansion projects and acquisitions. This should translate to 3% annual cash flow per share growth, positioning the company to deliver double-digit annual total returns.
Mid-America Apartment Communities: A REIT with a Proven Track Record
Another attractive dividend stock is Mid-America Apartment Communities (NYSE: MAA), a real estate investment trust (REIT) focused on apartments. With 30 years of dividend stability and growth, MAA currently pays a dividend yielding more than 3.5%, toward the high end of its 10-year average. The company has delivered strong total returns, outperforming its apartment peers over the last 10, 15, and 20 years.
Capitalizing on Market Opportunities
MAA is poised to benefit from a decline in new apartment supply in its markets, which should drive rent growth. The company is investing $1 billion in developing additional apartment communities and redeveloping existing ones to increase their appeal to renters. This growth strategy should enable MAA to continue increasing its dividend, driving attractive total returns.
Double Down on These Dividend Stocks
Both Enbridge and MAA offer attractive dividend yields and visible earnings growth ahead, positioning them to deliver strong total returns. If you already own these stocks, now may be the time to double up. If you don’t, consider adding them to your portfolio to boost your income and potential returns.
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