Unlock the Power of Dividend Stocks
When it comes to investing, it’s hard to go wrong with dividend stocks. Over the past 50 years, dividend-paying stocks in the S&P 500 have outperformed non-dividend payers by a significant margin, with dividend growers leading the charge. In fact, dividend growth stocks have delivered an impressive 10.2% average annual return, compared to 4.3% for non-payers.
The Benefits of Dividend Growth
The power of dividend growth becomes even more apparent when you consider the long-term implications. A $100 investment in the average dividend growth stock 50 years ago would have grown to over $14,100, assuming dividend reinvestment. That’s a staggering return, especially when compared to the average non-payer, which would have only grown to around $850.
Three No-Brainer Dividend Stocks
So, which dividend stocks should you consider adding to your portfolio? Here are three REITs with impressive track records of increasing their dividends:
Sun Communities: A Niche Focus
Sun Communities, a REIT with a focus on manufactured home communities, RV resorts, marinas, and U.K. holiday parks, has delivered strong performance over the years. With over 20 years of positive net operating income (NOI) growth, the company has consistently supported a rising dividend. Currently offering a 3% dividend yield, Sun Communities is well-positioned to continue increasing its dividend, thanks to its strong balance sheet and ability to raise rents across its properties.
Invitation Homes: Single-Family Rental Properties
Invitation Homes, a REIT focused on single-family rental properties, has increased its dividend every year since going public in 2017. With a current yield of 3.6%, the company is benefiting from strong demand for rental housing, driving steady rent growth. Its growing rental property portfolio and third-party management platform position it for continued dividend growth.
NNN REIT: Freestanding Retail Properties
NNN REIT, which owns freestanding retail properties net leased to growing retailers, offers an attractive dividend yield of 5.7%. With an elite dividend growth track record, including 35 consecutive years of increasing its dividend, NNN REIT is a reliable choice for income investors. Its conservative balance sheet and ability to acquire additional income-generating properties ensure its dividend growth will continue.
The Bottom Line
REITs have historically been excellent dividend growth stocks, generating stable rental income that grows as they expand their portfolios. Sun Communities, Invitation Homes, and NNN REIT have demonstrated this over the years, making them attractive options for investors seeking reliable income streams. With their strong dividend growth track records, these three REITs look like no-brainer dividend stocks to buy right now.
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