If you are interested in dividend growth stocks in June, consider taking a closer look at Agree Realty, Federal Realty, and T. Rowe Price. These companies offer high yields and consistency, making them worth exploring for investors who prioritize these factors.
Agree Realty may not be the largest player in the net lease real estate investment trust (REIT) sector, but it has shown impressive dividend growth compared to its peers. With a portfolio of around 2,100 properties, Agree has the potential for continued growth, especially when compared to larger competitors like Realty Income. Agree’s dividend yield is currently at 4.8%, higher than the average REIT, and it has increased its dividend annually for nearly a decade.
Federal Realty stands out as the only REIT that is a Dividend King, having increased its dividend annually for 57 consecutive years. The company focuses on quality over quantity, owning around 100 high-quality properties in areas with high average net worths and barriers to entry. While its dividend yield is in line with the average REIT at 4.3%, Federal Realty’s consistent dividend growth streak is unmatched in the sector.
T. Rowe Price offers a contrarian play for investors, with a dividend yield of approximately 4.2% and a stock price down nearly 50% from its 2021 highs. The company has increased its dividend annually for 38 consecutive years and has no long-term debt on its balance sheet, providing a strong financial cushion for dividend payments. While facing challenges from ETFs eating into its mutual fund operations, T. Rowe Price is adapting by offering new services and returning value to shareholders through stock buybacks.
Overall, Agree, Federal Realty, and T. Rowe Price are foundational dividend growth investments that may not have high growth rates but offer consistency and reliability. Each company brings something unique to the table, whether it’s faster dividend growth in a safe niche, a decades-long streak of dividend increases, or a contrarian play with recovery potential. Investors looking for a mix of dividend growth opportunities may find these stocks appealing.