One of the many great things about investing in dividend stocks is that they not costs usually a lot of money, earn it’s easy for beginners to get started. Meanwhile, you can routinely buy more shares because you have extra money to invest to grow your dividend income steadily.
Several major dividend stocks currently cost less than $175 per share, including EastGroup properties (NYSE:EGP), Central American apartment communities (NYSE: MAA)And Extra space storage (NYSE: EXR). If you were to buy any of the trio, you could generate a growing stream of passive dividend income.
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EastGroup Properties has been a great dividend stock over the years. The real estate investment trust (REIT) has paid 179 consecutive quarterly dividends. It has maintained or increased its payout for 32 consecutive years, and increased it in 29 years of them years, including the past 13 in a row. Most recently, it increased its payment by 10.2% in August, raising the quarterly level to $1.40 per share, or $5.60 per year.
The industrial REITs The stock price is currently around $172 per share. This yields a percentage of approximately 3.3%. dividend yield, that is more than double S&P500‘S dividend yield of 1.2%.
EastGroup Properties has built half of its portfolio from the ground up, investing $3 billion to develop 263 properties. It builds in business parks, which increases returns and reduces risk. The REIT will also acquire properties in its existing markets, including leading cities in the Sun Belt region, typically focusing on those with added value possibilities, such as redevelopment, expansion and rental. These investments have steadily grown the portfolio and rental income, making the REIT possible to routinely increase its dividend.
Mid-America Apartment Communities, MAA, also has an excellent track record of paying dividends. The apartment oriented residential REIT has paid 123 consecutive quarterly dividends on or the same rate as the previous payment or a higher level. It has increased its payment for 14 years in a rowincluding by 5% last December to $1.47 per share, or $5.88 per year.
The landlord’s stock price is currently around $161 per share. That gives it a dividend yield of 3.7%.
MAA owns a growing portfolio of apartment communities in the Sunbelt region. It focuses on metropolitan areas that benefit from this strong employment and job growth, which stimulates demand for apartments.
The REIT is investing heavily in expanding its apartment portfolio. It invested more than $450 million in five recently developed or acquired properties that it currently leases. In the meantime, it is investing nearly $1 billion in eight additional development projects that should stabilize in the coming years. These new investments will increase rental income, what it should make possible the REIT to continue increasing its dividend.
Extra Space Storage has seen its dividend grow significantly over the years. While the Self-storage REIT has not increased his payout every yearit has increased its dividend by almost 250% over the past ten years. The payment was last increased by 8% in February 2023.
Shares of the REIT currently cost less than $169 each. That gives it a dividend yield of 3.9% at the current rate.
Extra Space Storage is the leader in the US self-storage industry, with a 14% market share. It has grown through a series of acquisitions and other platform additions. The company most recently merged with Life Storage in a $15 billion deal, creating the U.S. market leader in self-storage. Extra Room has also built the industry’s leading third-party management platform and provides bridge loans to self-storage developers. These programs open the doors to additional growth opportunities, as the REIT often acquires properties it manages and developments it finances. These investments have helped grow the REIT’s portfolio and earnings, allowing it to increase its dividend.
EastGroup Properties, MAA and Extra Space Storage Great registration of the payment of dividends. While they haven’t increased their payments every yearthey have increased their dividends many times over in recent decades. That upward trajectory must continue. With relatively affordable prices, they are great dividend stocks buy for those who want to build streams of stable and steadily increasing dividend income.
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Matt DiLallo has positions in EastGroup Properties and Mid-America Apartment Communities. The Motley Fool holds and recommends positions in Mid-America Apartment Communities. The Motley Fool recommends EastGroup Properties and Extra Space Storage. The Motley Fool has a disclosure policy.
3 Great Dividend Stocks to Buy for Those With $175 or Less to Invest was originally published by The Motley Fool
