Dividend investing comes in different shapes and sizes. Some investors prefer high yields, while others value dividends that grow over time. If you fall into the latter category, consider taking a closer look at Agree Realty (NYSE: ADC), Federal Realty (NYSE: FRT), and T. Rowe Price (NASDAQ: TROW) as we move through June.
Agree Realty may not be the biggest player in the net lease real estate investment trust (REIT) sector, but it is certainly attractive. While Realty Income is the largest name in this niche, Agree Realty has managed to grow its dividend at a faster pace over the past decade. With a portfolio of around 2,100 properties, Agree is well-positioned for further growth compared to Realty Income, which boasts over 15,400 assets. Agree’s current dividend yield sits at 4.8%, above the industry average, and the company has increased its dividend annually for almost ten years.
Federal Realty stands out as the Dividend King of the REIT sector, having increased its dividend annually for an impressive 57 consecutive years. With a focus on quality over quantity, Federal Realty owns around 100 properties that are among the best in their respective areas. The company’s current yield is around 4.3%, in line with the industry average, but its consistent dividend growth streak sets it apart from its peers.
T. Rowe Price presents a contrarian play with a dividend yield of approximately 4.2%, significantly higher than the average financial stock. The company has raised its dividend annually for 38 consecutive years, despite facing challenges in the asset management industry. While T. Rowe Price’s stock has declined from its 2021 highs, the company’s lack of long-term debt provides a strong financial cushion for its dividend.
In conclusion, Agree Realty, Federal Realty, and T. Rowe Price offer different forms of dividend growth. While they may not deliver explosive growth, they serve as foundational investments for those seeking reliable dividend growth. Agree provides faster growth in a safe niche, Federal Realty offers unmatched consistency, and T. Rowe Price presents recovery potential for contrarian investors. Consider these stocks as part of a diversified dividend growth strategy.