I recently added to my positions in Mid-America Apartment Communities, Rexford Industrial Realty, and Starbucks. I plan to continue loading up on these top dividend stocks in my retirement account. Starbucks pays an attractive dividend, currently yielding about 2.7%.
The coffee giant has an exceptional record of growing its dividend. Since initiating its payout in 2010, Starbucks has increased its dividend at a 20% compound annual rate. It gave its investors a 7% raise in October, marking its 14th consecutive year of increasing the payout.
Starbucks expects to continue growing. It recently hired a new CEO who launched a “back to Starbucks” strategy to return to its core identity and put it back on a growth trajectory. The company aims to expand its global footprint from over 40,000 stores to 55,000 locations by 2030.
This future growth should enable Starbucks to continue raising its dividend. Mid-America Apartment Communities (MAA) is one of the country’s largest landlords, with around 104,500 apartment units spread across the fast-growing Sun Belt region. The apartment REIT has never suspended or reduced its dividend in its 30-year history and recently hit 15 consecutive years of dividend increases by providing investors with a 3.1% pay bump in December, yielding 3.9%.
MAA sees more growth ahead in 2025 and beyond.
Adding to dividend growth portfolios
After battling a surge of new apartment supply in recent years, the REIT expects those headwinds to fade next year, entering a multiyear cycle of demand outpacing supply.
This will benefit the company’s existing portfolio and the roughly $1 billion of projects it currently has under development. Additionally, MAA has the capacity to continue expanding in the future by starting additional developments and making acquisitions. With market conditions improving, MAA’s dividend growth rate could accelerate in the coming years.
Rexford Industrial Realty is an industrial REIT focused on owning warehouses in the Southern California market, which consistently has the highest demand and lowest supply in the country. This keeps occupancy levels high, driving strong rent growth. Rexford’s focused investment strategy has enabled it to grow its dividend briskly, with a 15% compound annual growth since its initial public offering and 18% over the past five years.
The REIT currently yields an attractive 4.3%. Rexford expects to grow its portfolio by 34% over the next three years, driven by repositioning and redevelopment projects, rent growth embedded in its leases, and recently secured acquisitions. Additionally, Rexford has ample financial flexibility to continue making acquisitions as opportunities arise.
These catalysts could enable it to continue increasing its dividend at an above-average rate. Starbucks, MAA, and Rexford Industrial Realty pay dividends with above-average yields and have excellent records of increasing their dividends. These features are why I recently added more shares of this trio to my retirement account and will likely continue loading up on shares over the next year.
They can deliver a growing income stream and solid total returns, making them ideal stocks to grow my retirement nest egg.
Johannah Lopez is a versatile professional who seamlessly navigates two worlds. By day, she excels as a SaaS freelance writer, crafting informative and persuasive content for tech companies. By night, she showcases her vibrant personality and customer service skills as a part-time bartender. Johannah's ability to blend her writing expertise with her social finesse makes her a well-rounded and engaging storyteller in any setting.
