3 Brilliant Dividend Stocks to Buy Now and Hold for the Long Term
Key Takeaways
In dividend stocks is a wise long-term investment strategy. According to data from Hartford Funds and Ned Davis Re, the average dividend-paying stock has outperformed nonpayers by more than 2-to-1...
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real estate
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June 28, 2025
04:06 PM
The Motley Fool
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In dividend stocks is a wise long-term investment strategy
According to data from Hartford Funds and Ned Davis Re, the average dividend-paying stock has outperformed nonpayers by more than 2-to-1 over the past 50 years
The best returns have come from dividend growers (10. 2% average annual total return)
Logis (PLD 1. 14%), Realty Income (O -0. 24%), and Mid-America Apartment Communities (MAA 0. 15%) have excellent records of paying a growing dividend
With more growth ly, they're brilliant dividend stocks to buy now and hold long-term
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The above-average growth should continue logis has a strong record of growing its dividend
The leading industrial REIT has increased its payment every year for more than a decade
It has grown its payout at a 13% compound annual rate over the past five years
That's more than double the rate of the S&P 500 (^GSPC 0. 52%) (5%) and other REITs (6%)
The REIT's growing dividend has helped drive 13. 6% annualized total returns for its investors over the last decade
Logis' dividend currently yields nearly 4%, putting it several times higher than the S&P 500 (less than 1
The industrial REIT should have no trouble increasing its dividend in the future
It generates stable and growing cash flow backed by long-term leases with built-in rental escalation clauses
Most of its current lease rates are well below market rents
Because of that, logis should be able to sign new leases at much higher rates as legacy leases expire
With demand for warehouse space expected to continue growing and supplies ly to remain constrained due to high construction costs and less available land for development, rental rates should continue to rise
Logis also has a fortress financial file, which gives it significant flexibility to invest in growing its portfolio
It has a vast land bank to develop new warehouses and selectively build data centers
The REIT can also make acquisitions as accretive opportunities arise
Built to pay a growing dividend Realty Income's mission is to invest in places that enable it to der a dependable and growing monthly dividend to its investors
The diversified REIT (retail, industrial, gaming, and other perties) has certainly dered on its mission over the years
It has increased its dividend 131 times since its public market listing in 1994, including the past 111 consecutive quarters and for 30 straight years
The landlord has grown its dividend at a 4. 2% compound annual rate since going public, which has helped drive 13. 6% compound annual total returns for its investors
The REIT is in an excellent position to continue increasing its dividend, which yields over 5
It has a conservative dividend payout ratio ( 75% of its very stable cash flow), which enables it to retain lots of cash to fund new income-generating real estate investments
Realty Income also has one of the 10 best balance sheets in the REIT sector
Realty Income has a long growth runway ahead of it
The REIT estimates that there are $14 trillion of perties in its core investment areas across the U
It has been steadily expanding its opportunity set by adding new investment verticals, U
Gaming perties ($400 billion opportunity) and U
Data centers ($500 billion)
Cashing in on growing rental demand Mid-America perties is one of the largest apartment landlords in the country
It primarily focuses on owning multifamily communities across the fast-growing Sun Belt region
Population and job growth in the South are driving strong and growing demand for rental perties
Rising demand should drive healthy rent growth across the REIT's existing portfolio
It should also support its ability to develop additional apartment jects in the future
Mid-America currently has seven development jects underway that should stabilize by the end of 2027
It expects to start three to four more jects this year and has land sites to build even more apartments in the future
Growing rental income should enable Mid-America to continue increasing its dividend
The REIT has never susp or reduced its dividend in its more than three decades as a public company
Meanwhile, it has grown its payout, which yields over 4%, at a 7% compound annual rate over the past 10 years, significantly exceeding the sector average
That has helped support an average annual total return of 10. 8% over the last decade
Smart buys for growing dividends logis, Realty Income, and Mid-America Apartment Communities have excellent records of paying dividends
They've steadily increased their high-yielding dividends over the years, which has helped contribute to their strong total returns
With more dividend growth ly, they're brilliant stocks to buy and hold for the long haul
Matt DiLallo has positions in Mid-America Apartment Communities, logis, and Realty Income
The Motley Fool has positions in and recommends Mid-America Apartment Communities, logis, and Realty Income
The Motley Fool recommends the ing options: long January 2026 $90 calls on logis
The Motley Fool has a disclosure policy.
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