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3 No-Brainer Dividend Stocks to Buy Right Now

By Keith Speights – Aug 15, 2021 at 5:52AM

Key Points

  • One of these no-brainer dividend stocks to buy has accelerating tailwinds and two decades of solid dividend growth.
  • The other two are REITs -- one that's about as safe of a bet as you're likely to find and the other with exceptionally strong growth prospects.

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The choices are easy with these great stocks.

Analysis paralysis. You probably can relate. Sometimes there are so many choices it's hard to make a decision.

There's certainly a risk of analysis paralysis when it comes to choosing which dividend stocks to buy. Nearly 4,000 stocks that trade on U.S. exchanges pay dividends. That's a lot of choices to consider.

The good news is that there are some dividend stocks that are so good that the decision is virtually a slam dunk. Here are three no-brainer dividend stocks to buy right now.

A person with hands behind head sitting in front of a laptop.

Image source: Getty Images.

Brookfield Renewable

"Accelerate" seems to be the operative word for Brookfield Renewable (BEP 1.08%) (BEPC 0.80%) at the moment. CEO Connor Teskey said in the company's recent second-quarter conference call, "The tailwinds for renewables continue to accelerate as stakeholders around the world increasingly focus on the global imperative to decarbonize." Only a few days later, the United Nations released a report that supported Teskey's view by stating that global climate change is accelerating. 

Brookfield Renewable is one of the relatively few renewable energy providers with the global scale to help countries and major corporations reduce their carbon emissions. This presents a significant growth opportunity for the company over the next decade and beyond.

The renewable energy leader currently has a 20-gigawatt capacity. That's enough to offset the carbon emissions of around 6 million vehicles. But Brookfield Renewable's development pipeline is even bigger, with 31 gigawatts of capacity that could power 6 million homes each year. 

What about Brookfield Renewable's dividend? Its yield stands at close to 3%. The company has increased its distribution by a compound annual growth rate of 6% over the last two decades. With the bright future for renewable energy, I fully expect this dividend will keep growing at a similar pace.

Easterly Government Properties

Some companies are legally required to pay dividends as long as they're profitable. I'm referring to real estate investment trusts (REIT), which must return at least 90% of their taxable income to shareholders in the form of dividends. One of the easiest picks to make among REIT stocks, in my view, is Easterly Government Properties (DEA 1.29%).

Easterly focuses on leasing properties to the U.S. government. It currently owns 84 properties that are leased to 39 federal agencies. As you might imagine, Uncle Sam is about as solid of a tenant as they come. Easterly doesn't have to worry about missing rent payments. 

The company's dividend yield of 4.75% is exceptionally juicy. Easterly's board chairman Darrell Crate said in the Q2 conference call earlier this month, "We believe we will either see this yield grow meaningfully or our stock price will increase." Investors would likely be happy with either outcome.

Don't expect phenomenal growth from Easterly. After all, there isn't a huge number of federal agencies that will need new office space over the next few years. However, CEO Bill Trimble stated in the Q2 call that Easterly is "seeing more opportunities than we've ever seen before in the acquisition pipeline." As I said, this REIT is an easy pick.

Innovative Industrial Properties

There's another REIT that I also really like right now -- Innovative Industrial Properties (IIPR -1.09%). Based on its name, you might think the company focuses on industrial properties. However, IIP instead provides real estate capital to medical cannabis operators.

The U.S. medical cannabis market has exploded. And so has IIP's business. The company's revenue has soared more than 1,200% over the last three years. Its profits have skyrocketed more than 1,800% during the same period.

IIP's momentum isn't likely to evaporate anytime soon. The company currently owns 73 properties in 18 states. There are another 17 states that have legalized medical cannabis where IIP doesn't own properties yet. 

The cannabis REIT's dividend yield of close to 2.5% might not seem overly impressive. But IIP has quadrupled its dividend payout over the last three years. The yield is only low because its share price has increased by more than 550%. With its strong growth prospects, IIP truly seems to be a no-brainer dividend stock to buy.

Keith Speights owns shares of Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Innovative Industrial Properties. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool recommends Easterly Government Properties. The Motley Fool has a disclosure policy.

Stocks Mentioned

Innovative Industrial Properties Stock Quote
Innovative Industrial Properties
IIPR
$118.68 (-1.09%) $-1.31
Brookfield Renewable Partners Stock Quote
Brookfield Renewable Partners
BEP
$29.01 (1.08%) $0.31
Easterly Government Properties Stock Quote
Easterly Government Properties
DEA
$15.73 (1.29%) $0.20
Brookfield Renewable Stock Quote
Brookfield Renewable
BEPC
$32.70 (0.80%) $0.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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