Hundreds of companies pay dividends. However, most aren't ideal stocks to buy and hold if you want to collect a bankable stream of passive income. That's because many companies have more volatile cash flows, weaker financial profiles, or lackluster growth prospects, impacting their ability to sustain their dividends during difficult times.
On the other hand, many companies stand out for their ability to pay durable dividends. Here are three top high-yielding dividend stocks that have paid a stable and growing dividend for over 100 straight quarters (more than a quarter-century). While that past stability doesn't guarantee future stability, it does bode well for investors, since the last 25 years have had plenty of economic difficulties.
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EastGroup Properties
EastGroup Properties (EGP +0.25%) recently declared its 182nd consecutive quarterly dividend payment. The real estate investment trust (REIT) focused on warehouse properties has maintained or increased its dividend for 32 straight years. It has raised its payment in 29 of those years, including the past 13 in a row.
The industrial REIT is in an excellent position to continue paying a stable and growing dividend. It has a four-pronged growth strategy, concentrated in high-growth markets:
- Targeted development: EastGroup has built 49% of its portfolio from the ground up.
- Acquisitions: It will acquire operating properties, value-add opportunities (expansion or leasing upside), and properties ripe for redevelopment.
- Capital recycling: The REIT will sell assets with lower upside potential and reinvest that money into higher-growth opportunities.
- Internal growth: It benefits from rent growth embedded in long-term leases and capturing higher market rents as legacy leases expire.
NYSE: EGP
Key Data Points
With a strong financial profile, EastGroup Properties is in an excellent position to continue paying and growing its dividend, which yields over 3% -- more than double the S&P 500's (^GSPC 1.74%) dividend yield.
Realty Income
Realty Income (O +0.33%) recently declared its 659th consecutive monthly dividend. The diversified REIT has increased its dividend for a remarkable 110 straight quarters (and 130 times since its public market listing in 1994). It has raised its payment at least once every year for three decades.
The REIT focuses on investing in net lease real estate. Those leases require tenants to cover all property operating costs (including routine maintenance, real estate taxes, and building insurance). Realty Income steadily grows its portfolio by investing in additional net lease properties.
It has a low dividend payout ratio and one of the 10 best balance sheets in the REIT sector. That gives it strong financial flexibility to continue growing its portfolio and monthly dividend, which yields nearly 6%.
NYSE: O
Key Data Points
Mid-America Apartment Communities
Mid-America Apartment Communities (MAA +0.44%) recently declared its 126th consecutive quarterly dividend payment. The apartment REIT has never suspended or reduced its dividend during its 30 years as a public company. Instead, it has paid a stable and growing dividend over that period. Last year was the 15th straight year that the landlord hiked its dividend payment.
NYSE: MAA
Key Data Points
The REIT owns apartments in high-growth markets across the Sun Belt region. That enables it to benefit from steadily rising rental income across its existing properties and opens the door to expansion opportunities. Mid-America currently has seven recently developed apartment communities in the lease-up phase (three of which it acquired last year) and seven more under construction. Meanwhile, it plans to start three to four more development projects this year.
With a strong, investment-grade-rated balance sheet, the landlord has ample financial flexibility to continue expanding its portfolio. That should support the continued stability and growth of its nearly 4%-yielding dividend.
Bankable dividend stocks
EastGroup Properties, Realty Income, and Mid-America Apartment Communities have paid dividends at or above the prior payment's level for over 100 straight quarters. In doing so, they've demonstrated the durability of their dividends over decades. These REITs are in an excellent position to continue paying resilient dividends in the future. That makes them ideal dividend stocks to buy for those seeking rock-solid income streams that should be sustainable even during difficult times.
