Real estate investment trusts (REITs) are known for their stable dividend income, and some stand out from the rest due to their strong financial foundation, resilient business models, and robust demand for their properties. Three such REITs that offer durable dividend income are Agree Realty (NYSE: ADC), Stag Industrial (NYSE: STAG), and Sun Communities (NYSE: SUI).
Agree Realty has a 5.7% annual dividend growth rate and a 4% yield, while Stag Industrial has increased its dividend every year since 2011 and offers a 4% yield. Sun Communities has never cut or suspended its dividend in three decades and currently yields 3%. All three REITs have a low-leverage balance sheet and a conservative dividend payout ratio, making them ideal for long-term investors seeking stable and growing dividend income.
Agree Realty’s strong foundation is built on owning freestanding retail properties leased to high-quality retailers. The company has an excellent investment-grade credit rating backed by a low leverage ratio, giving it financial flexibility to continue acquiring income-generating retail properties. Its conservative dividend payout ratio of 73% ensures that investors can expect steadily rising income.
Stag Industrial’s diversified portfolio of industrial real estate and long-term agreements with high-quality tenants make it an attractive option for investors. The company has increased its dividend every year since 2011 and offers a dividend yield above 4%. Its low-leverage balance sheet and conservative dividend payout ratio also make it an attractive option.
Sun Communities’ durable demand is driven by the growing adoption of e-commerce and onshoring of manufacturing, as well as the high cost of relocating manufactured homes. The company has delivered 20 straight years of rising same-store net operating income (NOI) and has a solid investment-grade balance sheet that allows it to continue expanding its portfolio.
Overall, Agree Realty, Stag Industrial, and Sun Communities are three rock-solid REITs with durable dividend income that offer investors a stable source of returns. With their strong financial foundations, resilient business models, and robust demand for their properties, these REITs are well-positioned for long-term success.
Source: https://finance.yahoo.com/news/3-durable-dividend-stocks-buy-114900419.html