3 Brilliant High-Yield Dividend Stocks to Buy Now and Hold for the Long Term

2 months ago 66

Matt DiLallo, The Motley Fool

Sun, December 21, 2025 astatine 12:57 PM CST 5 min read

  • Realty Income has accrued its dividend astatine a 4.2% compound yearly complaint implicit the past 3 decades.

  • Mid-America Apartment Communities precocious extended its dividend maturation streak to 16 years successful a row.

  • Rexford Industrial Realty has delivered a robust 15% compound yearly dividend maturation complaint implicit the past 5 years.

  • 10 stocks we similar amended than Realty Income ›

Investing successful dividend stocks is simply a astute idea. They've historically delivered a overmuch higher full instrumentality compared to non-dividend payers, with the champion returns coming from dividend growers.

Many existent property concern trusts (REITs) person exceptional records of expanding their dividends. That's 1 crushed wherefore REITs person outperformed stocks implicit the agelong term.

Realty Income (NYSE: O), Mid-America Apartment Communities (NYSE: MAA), and Rexford Industrial Realty (NYSE: REXR) basal retired for their quality to consistently summation their higher-yielding dividends. Those features marque them superb income stocks to bargain for the agelong term close now.

Realty Income's logo connected  a mobile phone.

Image source: Getty Images.

Realty Income is 1 of the astir accordant dividend maturation stocks successful the REIT sector. The landlord has accrued its monthly dividend outgo 133 times since its nationalist marketplace listing successful 1994, including the past 113 quarters successful a row. It has grown its high-yielding payout (5.7% existent yield) astatine a 4.2% compound yearly rate. That has helped it present a robust 13.7% mean annualized total return implicit the past 3 decades.

The REIT has 1 of the strongest fiscal profiles successful the industry. It has a blimpish dividend payout ratio astatine astir 75% of its adjusted funds from operations. That gives it a comfy cushion portion allowing it to clasp lots of currency to put successful caller income-generating properties. Realty Income besides has 1 of the 10 champion equilibrium sheets successful the REIT sector, giving it further flexibility to proceed expanding its portfolio.

Realty Income has nary shortage of concern opportunities. It takes a diversified approach, investing successful retail, industrial, gaming, and different properties crossed the U.S. and Europe secured by semipermanent net leases. It sourced $97 cardinal of imaginable concern opportunities done the 3rd 4th of this year, 4% of which it closed, arsenic it lone moved guardant with its champion concern opportunities. With $14 trillion of existent property suitable for nett leases crossed the U.S. and Europe, Realty Income has a precise agelong maturation runway.

Mid-America Apartment Communities precocious extended its dividend maturation streak to 16 years successful a row. The REIT's dividend present yields 4.5%. The flat proprietor has ne'er suspended oregon lowered its dividend successful its much than 30 years arsenic a nationalist company. It has grown its payout astatine an above-average 7% compound yearly complaint implicit the past decade. This dependable dividend maturation has helped enactment an above-average 9.6% compound yearly full shareholder return implicit the past 20 years.


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