Inflation remains a concern for many, particularly retirees and those on fixed incomes. Amid this economic challenge, investing in dividend-paying stocks, particularly Real Estate Investment Trusts (REITs), proves advantageous. REITs, known for consistent payouts, can outpace inflation, making them appealing to investors seeking income stability. Let’s explore three REITs renowned for continually increasing dividends.
- Realty Income Corp (NYSE:O): Based in San Diego, Realty Income is a triple-net lease REIT with a global portfolio of over 13,250 properties. Known as the “Monthly Dividend Company,” Realty Income is an S&P 500 Dividend Aristocrat, boasting a remarkable portfolio occupancy rate of 99%. Despite market fluctuations, Realty Income has demonstrated resilience, providing a total return of 1,184% since January 1, 1995.
- Dividend Update: On December 12, Realty Income announced its 123rd dividend increase since 1994, elevating the monthly dividend from $0.256 to $0.2565 per share. The new annualized dividend of $3.078 yields 5.64%, showcasing the REIT’s commitment to consistent dividend growth.
- Mid-America Apartment Communities Inc. (NYSE:MAA): Specializing in residential properties, Mid-America Apartment Communities owns nearly 102,000 units across 16 states. With a presence in the Southeast, Southwest, and Mid-Atlantic states, MAA has been a public company for 28 years.
- Dividend Growth: Notably, Mid-America raised its quarterly dividend by 5% on December 12, from $1.40 to $1.47 per share. This marks the second dividend increase in 2023, emphasizing the REIT’s robust funds from operations (FFO) and management’s confidence in its future. With a history of 119 consecutive quarterly cash dividends, MAA has increased payouts by 465% since 1994, providing a solid 4.6% yield.
- CubeSmart (NYSE:CUBE): Headquartered in Malvern, Pennsylvania, CubeSmart is a self-storage REIT with 1,374 facilities across the U.S. Renowned for consistent dividend growth, CubeSmart rebranded in 2011, showing impressive FFO per share growth of 242% between 2012 and 2022.
- Dividend Boost: CubeSmart announced a 4.1% increase in its quarterly dividend on December 7, from $0.49 to $0.51 per share. With an annual dividend of $2.04 per share, the yield stands at 4.87%, affirming CubeSmart’s commitment to rewarding investors with sustained dividend growth.
Investors seeking a hedge against inflation can find stability and income growth in high-quality REITs like Realty Income, Mid-America Apartment Communities, and CubeSmart. These companies showcase a track record of consistent dividend increases, providing a compelling investment strategy in the face of economic uncertainties.
