Dividend investing is a popular strategy for investors looking to generate passive income over the long term. However, not all dividends are created equal. Some are more durable than others, meaning they are more likely to withstand economic downturns and continue growing over time. This durability is often a result of the underlying company’s financial strength and the resiliency of its business model.
Real estate investment trusts (REITs) are known for their durable dividends, and companies like Agree Realty, Stag Industrial, and Sun Communities are prime examples of this. These REITs have demonstrated consistent dividend growth and offer attractive yields, making them ideal for investors seeking stable and growing income for the long term.
Agree Realty, for example, has a track record of growing its dividend at a solid 5.7% annual rate over the past decade. The company focuses on owning freestanding properties leased to high-quality retailers in resilient sectors like grocery and home improvement. With a strong financial foundation and conservative dividend payout ratio, Agree Realty is well-positioned to continue providing investors with steady income for years to come.
Stag Industrial is another REIT that has been consistent in increasing its dividend every year since going public in 2011. The company owns a diversified portfolio of industrial real estate, leasing properties to high-quality tenants under long-term agreements. With a low-leverage balance sheet and a conservative dividend payout ratio, Stag Industrial has the financial flexibility to continue acquiring income-generating properties and growing its dividend over time.
Sun Communities, a residential REIT, has never cut or suspended its dividend in its three decades as a public company. The company focuses on properties like manufactured home communities and RV resorts, which benefit from durable demand drivers. With a track record of rising same-store net operating income and a solid rental growth rate, Sun Communities is well-positioned to continue delivering consistent dividend growth to investors.
Overall, Agree Realty, Stag Industrial, and Sun Communities are examples of companies with long records of paying durable and growing dividends. These REITs have resilient real estate portfolios, strong balance sheets, and solid growth prospects, making them attractive options for investors looking for a lifetime of passive income. By investing in companies with these characteristics, investors can build a portfolio that provides stable and growing income for years to come.
