Core Insights - Dividend growers are considered some of the best long-term investments due to their ability to provide a lucrative and growing income stream alongside rising share prices, historically outperforming non-dividend payers and companies that do not increase dividends significantly [1] Company Summaries - **Brookfield Asset Management**: - A leading alternative investment manager with over $1 trillion in assets under management (AUM) and a current dividend yield of 3.3%, which is approximately three times the S&P 500's level [4] - The company has demonstrated strong dividend growth, increasing its payout by 19% in early 2024 and by another 15% the following year, with expectations of around 20% annual earnings growth over the next five years [5][6] - Brookfield is capitalizing on trends such as the shift towards alternative investments and AI infrastructure, supporting continued dividend growth of over 15% annually [6][8] - **MPLX**: - A master limited partnership (MLP) focused on energy midstream assets, currently yielding 8.1% [7] - MPLX has consistently raised its distribution by 10% or more for four consecutive years, with stable cash flow supported by long-term contracts and a conservative leverage ratio of 3.7 times [8] - The company generates enough cash to cover its payout comfortably by 1.3 times, providing flexibility for acquisitions and organic expansion projects [9] - **Prologis**: - Has delivered a compound annual dividend growth of 13% over the past five years, making it another strong candidate for dividend growth investment [8]

Core Insights - The article emphasizes the importance of in-depth research on various income-generating investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] Group 1: Analyst Background - Leo Nelissen is identified as an analyst focusing on significant economic developments related to supply chains, infrastructure, and commodities [2] - He is a contributing author for iREIT®+HOYA Capital, aiming to provide insightful analysis and actionable investment ideas, particularly in dividend growth opportunities [2] Group 2: Analyst's Position - The analyst has disclosed a beneficial long position in shares of AM, UNP, RTX, and REXR through stock ownership, options, or other derivatives [3] - The article expresses the analyst's own opinions and indicates that no compensation is received for the article, aside from Seeking Alpha [3] Group 3: Disclosure Information - Seeking Alpha clarifies that past performance is not indicative of future results and does not provide recommendations or advice on investment suitability [4] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts are third-party authors, including both professional and individual investors [4]

Core Insights - Dividend growth stocks have historically provided strong returns, with an average annualized total return of 10.2% over the past 50 years, outperforming non-dividend payers and those with unchanged dividends [2] Group 1: NextEra Energy - NextEra Energy has increased its dividend for over 30 consecutive years, achieving a 10% compound annual growth rate over the past two decades, resulting in a 14% average annual total shareholder return [5][6] - The company expects to grow its adjusted earnings per share by more than 8% annually over the next decade and plans a 10% dividend increase in 2026, with a 6% compound annual growth rate through at least 2028 [8] Group 2: Realty Income - Realty Income has raised its dividend every year since its IPO in 1994, achieving a 4.2% compound annual growth rate and delivering a 13.7% average annualized total return [9] - The REIT invests in a diversified portfolio of properties secured by long-term net leases, producing durable rental income and maintaining a strong balance sheet [11][12] Group 3: Johnson & Johnson - Johnson & Johnson has increased its dividend for 63 consecutive years, qualifying as a Dividend King, and has delivered a 10.5% annualized total return over the past 30 years [13] - The company generates significant free cash flow, covering its dividend outlay, and invests heavily in research and development, supporting continued dividend growth [15][16] Group 4: Investment Potential - NextEra Energy, Realty Income, and Johnson & Johnson are positioned to continue their trends of dividend growth and double-digit annual total returns, making them ideal for investors looking to build a substantial portfolio [17]

Core Viewpoint - Investing in Dividend Aristocrats provides solid dividend growth from established businesses that have successfully navigated multiple business cycles [1] Group 1 - Dividend Aristocrats are companies known for their consistent and reliable dividend payments [1] - These companies have a proven track record of enduring various economic conditions, making them a stable investment choice [1] - The strategy of investing in Dividend Aristocrats can help anchor an investment portfolio [1]

Core Insights - The article emphasizes the importance of in-depth research on various income-generating investment vehicles, including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting the value of a free trial for potential investors [1]. Group 1 - The analyst Leo Nelissen focuses on major economic developments related to supply chains, infrastructure, and commodities, aiming to provide insightful analysis and actionable investment ideas [2]. - The analysis particularly emphasizes dividend growth opportunities, indicating a strategic focus on income generation for investors [2]. Group 2 - The article includes disclosures regarding the analyst's lack of positions in the mentioned companies, ensuring transparency in the analysis provided [3]. - It also clarifies that past performance does not guarantee future results, and no specific investment recommendations are made, maintaining a neutral stance on investment suitability [4].

Core Insights - The Vanguard Dividend Appreciation ETF (VIG) and ProShares - S&P 500 Dividend Aristocrats ETF (NOBL) both focus on companies with strong dividend histories but differ in their index construction and outcomes as market leadership changes [1][2]. Cost and Size Comparison - VIG has a significantly lower expense ratio of 0.05% compared to NOBL's 0.35% [3][4]. - As of December 12, 2025, VIG achieved a 1-year return of 12.73%, while NOBL's return was 3.05% [3]. - VIG has a larger Assets Under Management (AUM) of $120.4 billion compared to NOBL's $11.3 billion [3]. Performance and Risk Metrics - Over the past five years, VIG experienced a maximum drawdown of 20.39%, while NOBL had a drawdown of 17.92% [5]. - An investment of $1,000 in VIG would have grown to $1,557 over five years, compared to $1,319 for NOBL [5]. Portfolio Composition - VIG holds a diversified portfolio of 338 companies, with significant sector weights in technology (28%), financial services (22%), and healthcare (15%) [6]. - NOBL's portfolio consists of 70 equally weighted stocks, with major exposure to industrials (23%) and consumer defensive sectors (22%) [7]. Investment Implications - VIG's broader approach allows for greater influence from larger, successful companies, while NOBL's equal-weight strategy provides steadier returns but may limit growth from faster-growing companies [10][11]. - The distinction between VIG and NOBL lies in how they source dividend growth, with VIG adapting to market leaders and NOBL maintaining a historical standard of dividend endurance [11].

Market Overview - The S&P has reached 39 all-time highs this year, with all 11 sectors turning positive [2] - The VIX index is under 14 for the first time in a year, indicating reduced market volatility [2] - The macroeconomic factors did not drive the market; instead, earnings were the primary driver [3] Future Outlook - The market is expected to set up well for 2025, with historical trends showing bull markets occurring every decade [3] - In the fourth year of a bull market, there is a 50% chance of continued positive returns, but also a significant risk of drawdowns [4] - Leadership within sectors is expected to rotate, with volatility likely to increase and overall returns moderating [5] Sector Analysis - There is a potential shift in leadership within the tech sector, with a focus on companies that demonstrate profitability and margin growth rather than just spending [7] - AI-related spending is projected to grow from $400 billion this year to $600 billion next year, particularly in infrastructure and data center buildouts [6] - Companies in cybersecurity and software are highlighted as potential beneficiaries of AI advancements [8][11] Investment Strategy - The focus is on dividend growth companies, which have a history of increasing dividends rather than just high-yield stocks [10] - The "Dogs of the Dow" strategy, which targets the highest yielding stocks, has outperformed expectations this year [10] - Specific companies like Palo Alto Networks are noted for their leadership in cybersecurity, which is becoming increasingly essential due to rising data access risks [11]

Core Insights - Dividends significantly enhance total returns for investors, contributing an average of 34% to the S&P 500's total returns from 1940 to 2024 [1] - Companies that consistently increase dividends tend to outperform those that do not, with reinvested dividends accounting for 85% of the S&P 500's total returns from 1960 to 2023 [2] Group 1: Dividend Growth and Investment Strategy - High-yield stocks are not always the best investment; companies with sustainable business models and steady cash flows can provide better long-term returns even with lower yields [4] - Building a portfolio of dividend growth stocks is a recommended strategy for becoming a dividend millionaire, with Dividend Kings being a prime focus [9] - Dividend Kings are companies that have raised dividends for at least 50 consecutive years, with 56 such companies currently available [9] Group 2: Examples of Successful Dividend Stocks - Home Depot exemplifies the power of dividend compounding, where a $10,000 investment in 1990 grew to $1 million by 2015 through reinvested dividends [6] - Parker-Hannifin, a Dividend King with 69 consecutive years of dividend increases, has seen its stock rise 3,800% since 2000, despite a low yield of 0.8% [11][12] Group 3: Investment Vehicles - The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index, focusing on large-cap stocks that have increased dividends for at least 10 consecutive years, providing diversification with 338 stocks [13] - The ETF has an expense ratio of only 0.05% and has generated total returns exceeding 500% since its inception in 2006, with dividends playing a significant role in these returns [14][17]

Core Insights - The company invests significant resources, including thousands of hours and over $100,000 annually, to identify profitable investment opportunities, which has resulted in nearly 200 five-star reviews from satisfied members [1] - The company is preparing to release its top investment picks for 2026, offering a limited-time opportunity for new members to access these insights with a 30-day money-back guarantee [1] Company Background - Samuel Smith, the lead analyst and Vice President, has a diverse background in dividend stock research and holds advanced degrees in Civil Engineering and Mathematics, as well as expertise in project management and machine learning [1] - The investment group, High Yield Investor, focuses on balancing safety, growth, yield, and value, and offers various portfolio services including core, retirement, and international portfolios [1] Services Offered - High Yield Investor provides regular trade alerts, educational content, and an active chat room for investors to engage with like-minded individuals [1]

Group 1 - The article emphasizes the importance of in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting the potential for income generation [1] - Leo Nelissen is identified as an analyst focusing on economic developments related to supply chains, infrastructure, and commodities, aiming to provide actionable investment ideas with a focus on dividend growth opportunities [1] Group 2 - The article includes a disclosure indicating that the author has a beneficial long position in UNP shares, suggesting a personal investment interest in the company [2] - It is noted that the opinions expressed in the article are those of the author and do not reflect the views of Seeking Alpha as a whole, indicating a separation between individual analysis and the platform's stance [3]