ADC - 2 Incredibly Cheap High-Yield Dividend Growth Stocks to Buy Now
2024-07-17 05:45:00 ET
The problem with dividend growth stocks is that investors often afford them a premium valuation. Given the dividend yield equation, that basically translates to a lower yield. However, the stock market is near all-time highs right now, so the yield on the S&P 500 is disappointingly hovering at a little less than 1.3%. You can do much better than that with dividend growers like Agree Realty (NYSE: ADC) and Rexford Industrial (NYSE: REXR) . Here's what you need to know about these high-yield dividend growth stocks.
The past decade or so has been one of big changes for Agree Realty. This net-lease real estate investment trust (REIT) cut its dividend in 2011. At that point, the business was tiny, owning fewer than 100 properties and the bankruptcy of a single important tenant left it with no choice but to trim the payout. Agree is not that tiny company anymore.
In a little more than a decade, it has expanded its portfolio to include 2,150 properties. Along with that portfolio growth has come dividend growth, with the annualized increase during the past 10 years averaging almost 6%. That's about twice the historical rate of inflation growth and significantly higher than some of the largest names in the net-lease REIT niche. Now add in the attractive 4.6% dividend yield.
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2 Incredibly Cheap High-Yield Dividend Growth Stocks to Buy Now