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3 Best Dividend Stocks to Buy Now
The Motley Foolยท 2025-08-30 08:05
Core Insights - Companies that have increased their dividends annually for 25 consecutive years are rare, with Medtronic, NextEra Energy, and Realty Income being highlighted as attractive options for dividend investors [1][2] Group 1: Medtronic - Medtronic has increased its dividend for 48 consecutive years, with a current yield of approximately 3.1%, significantly higher than the S&P 500's 1.2% and the healthcare sector's average of 1.8% [3] - The company has faced slow product development and rising costs, impacting earnings growth, but new products are expected to drive revenue growth [4] - A spinoff of its diabetes business is anticipated to benefit earnings, presenting a potential buying opportunity for investors [5] Group 2: NextEra Energy - NextEra Energy has increased its dividend for 31 years, currently yielding around 3%, which is above the average utility yield of 2.7% [6] - The company boasts a remarkable 10% annualized dividend growth rate over the past decade, which is particularly impressive for a utility [7] - With a significant backlog of growth investments in solar and wind power, NextEra Energy is positioned for steady earnings and dividend growth [8] Group 3: Realty Income - Realty Income has achieved 30 consecutive annual dividend increases, offering a high yield of 5.5%, compared to the average REIT yield of 3.9% [9] - The company operates over 16,600 properties, focusing on net lease assets, which are considered low-risk [10] - Realty Income's portfolio is diversified, with 75% in retail properties and 25% in other sectors, providing stability and income generation potential [11] Group 4: Investment Opportunities - Medtronic, NextEra Energy, and Realty Income present attractive businesses with long histories of growing dividends, making them suitable for long-term investors seeking high-yield stocks [12]