Title: Three Enduring Dividend Stocks Perfect for a Lifetime of Passive Income
Some dividends are indeed more resilient than others, and that's often due to a company's financial strength and the robustness of its business model. Companies that possess these characteristics are ideal for long-term investment, offering a lifetime of stable and growing dividend income.
Real Estate Investment Trusts (REITs) are often home to such durable dividends. Three notable examples are Agree Realty (ADC), Stag Industrial (STAG), and Sun Communities (SUI). These REITs have demonstrated a remarkable ability to withstand market fluctuations while rewarding their investors with consistent dividend growth.
Firm Foundations
Agree Realty has proven itself to be a pillar of consistency over the years. The retail REIT has managed to hike its dividend annually at a rate of 5.7% for the past decade. Currently, Agree Realty's dividend yields over 4%, significantly surpassing the S&P 500's 1.2% yield.
The secret to its success? Agree Realty focuses on acquiring freestanding properties leased to high-quality retailers with investment-grade credit in sturdy sectors like grocery, home improvement, and convenience stores. The REIT also utilizes long-term net leases or ground leases, ensuring predictable rental income due to tenants covering all operating costs.
Stag Industrial is another REIT that shares Agree Realty's streak of consistency. Since its inception in 2011, it's raised its dividend each year. Stag Industrial also offers a dividend yield exceeding 4%. It boasts a diversified portfolio, owning industrial properties such as warehouses and light manufacturing facilities. The demand for industrial space has been robust due to e-commerce and the shifting of manufacturing activities.
Unwavering Demand
Sun Communities, an REIT dedicated to residential properties, has remained steadfast in fulfilling its dividend obligations for over three decades. Unlike the preceding REITs, it has never reduced or suspended its dividend. Sun Communities has continued to elevate its dividend over the years, including its eighth consecutive annual increase.
The REIT specializes in niche properties, such as manufactured home communities, RV resorts, marinas, and holiday parks in the U.K. These assets enjoy durable consumer demand, as the cost of relocation for manufactured homes keeps residents in place, and the demand for outdoor recreational spaces continues to rise.
Three Pillars of Durable Dividends
Agree Realty, Stag Industrial, and Sun Communities have distinguished themselves as reliable sources of dividend income, boasting robust portfolios and financial foundations. With their track records of consistent dividend growth, these REITs are a promising option for investors seeking secure returns in the long term.
Investors looking to engage in long-term dividend investing might consider Agree Realty, Stag Industrial, and Sun Communities, given their proven ability to maintain and increase dividends. Agree Realty's strategic focus on acquiring high-quality retail properties has enabled it to increase its dividend by 5.7% annually for a decade, offering a yield higher than the S&P 500.
Financial management is a crucial element in the success of these REITs. Stag Industrial, for instance, has consistently raised its dividend since its inception in 2011, with a diversified portfolio of industrial properties that caters to the robust demand for warehouse space caused by e-commerce and manufacturing shifts.
