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2 High-Yield Dividend Stocks to Buy With $300 and Hold Forever
MAAMAA(MAA) The Motley Fool·2025-01-27 10:19

Dividend Stocks Overview - Investing in dividend stocks can provide a durable income stream with stable and growing recurring dividends [1] - Realty Income (O) and Mid-America Apartment Communities (MAA) are highlighted as durable dividend stocks with higher-yielding dividends on solid financial foundations [2] Realty Income (O) - Realty Income has paid 655 consecutive monthly dividends since 1969 and increased its dividend every year since its 1994 public listing, with 128 total increases and a 4.2% compound annual growth rate [3] - The REIT currently pays a monthly dividend of 0.264pershare,amountingto0.264 per share, amounting to 3.168 annually, with a 5.8% dividend yield at a share price below 55[4]RealtyIncomeownsadiversifiedrealestateportfolio,includingretail,industrial,andgamingproperties,withnetleasesprovidingstablerentalincome[5]TheREITpaysoutabout7555 [4] - Realty Income owns a diversified real estate portfolio, including retail, industrial, and gaming properties, with net leases providing stable rental income [5] - The REIT pays out about 75% of its adjusted funds from operations (FFO) in dividends, maintaining a strong balance sheet with A3/A- bond ratings [6] - Realty Income has grown its adjusted FFO per share at a mid-single-digit rate over the past three decades and has significant financial flexibility for accretive acquisitions, with a global net lease addressable market estimated at 14 trillion [7] Mid-America Apartment Communities (MAA) - MAA has never suspended or reduced its dividend since its 1994 public listing and has raised its dividend for the last 15 consecutive years [8] - The REIT recently increased its quarterly dividend by 3.1% to 1.515pershare,or1.515 per share, or 6.06 annualized, yielding over 4% at a share price below 150[9]MAAgeneratesstablerentalincomeduetohighdemandforhousingintheSunBeltregion,withaconservativedividendpayoutratioof66150 [9] - MAA generates stable rental income due to high demand for housing in the Sun Belt region, with a conservative dividend payout ratio of 66% of core FFO and A3/A- bond ratings [10] - The company is investing 1 billion in new apartment communities across the Sun Belt, with plans to start 3-4 new projects this year and a growing pipeline of future developments [11] - MAA’s growth drivers, including acquisitions and property upgrades, are expected to support continued dividend increases in the long term [12] Conclusion - Realty Income and MAA are high-quality, high-yielding dividend stocks with strong financial foundations and growth potential, making them attractive for long-term investors seeking durable income streams [13]