Put some extra pop into your income account by investing in these four stocks before they announce a higher dividend in October. Investing in stocks with regular dividend growth is one of the most time-tested strategies for consistently growing wealth throughout any market conditions.
My dividend driven investment strategies are very focused on finding, owning, and sometimes trading dividend paying stocks that regularly increase their dividend rate. You can put some extra pop into your brokerage account values by purchasing shares of growing dividend stocks before they come out with their next dividend increase announcement.
The real estate investment trust (REIT) sector includes a large number of companies that pay growing dividends and their shares have attractive yields. Most REITs announce a new, higher dividend rate once a year and then pay the new rate for the next four quarters. I maintain a REIT database that includes the timing of when the companies typically announce dividend increases as a data point for each REIT. Often a good time to buy or add shares of a REIT that you expect to announce a higher dividend payment for the next quarterly payout is a month to six weeks before the next dividend announcement of a new higher payout. When the market sees the higher rate, the share price often moves higher, and the result can be a nice short-term gain to the upside. You can use this information to either buy shares to hold for the longer term at a lower price or as an intermediate term trade with the goal of making a profit on the typical high single digit to low double digit share price gain that often comes with a higher dividend announcement. In many
When the market sees the higher rate, the share price often moves higher, and the result can be a nice short-term gain to the upside. You can use this information to either buy shares to hold for the longer-term at a lower price or as an intermediate term trade with the goal of making a profit on the typical high single-digit to low double-digit share price gain that often comes with a higher dividend announcement. In many cases, the share price will continue to appreciate until just before the next ex-dividend date.
While there are REITs that make their annual dividend increase announcements in every month of the year, the majority cluster in the last quarter or the first couple of months of the new year. As we move into October, there will be more opportunities to make this type of investment. Also, since in recent years September has been very volatile, you may be able to time your purchases to pick up shares when the overall market is in a down period. Here are four REITs that should announce dividend increases in October.
Brixmor Property Group (NYSE: BRX) is an owner and operator of high-quality, open-air shopping centers. The Company’s more than 500 retail centers are primarily located in the eastern one-third of the continental United States. Brixmor went public in late 2013 and has increased its dividend by an average of 10.5% each of the last two years, including a 9% increase last year. The current dividend rate is just 47% of the trailing twelve month’s FFO per share, so I expect another 8% to 10% increase to be announced in late October. The new dividend rate is for the following year, with the first record and payment date of the higher rate occurring in January. BRX currently yields 3.5%.
Crown Castle International Corp (NYSE: CCI) owns cell phone towers, which are leased by the various wireless services providers. The company is the nation’s largest provider of shared wireless infrastructure. Crown Castle converted to REIT status in September 2013 and at that point started to pay dividends. For the last two years, the REIT has announced a new higher dividend around the 20th of October with the record and payment dates in the last half of December. Last year, the dividend was increased by 8%. For the first half of 2016, AFFO is up 11% over 2015, so a double-digit dividend increase is possible. At least high single-digits increase is almost assured. CCI yields 3.75%.
LTC Properties Inc. (NYSE: LTC) invests in senior housing and long-term care properties through acquisitions, development, mortgage loans, and other investments. Last year, the company raised its dividend after two years without an increase. However, LTC has a longer-term history of about 5% per year dividend growth. Last year, the monthly dividend rate was bumped up by 5.9%. Over the first half of 2016 AFFO per share is up over 15% compared to the same period in 2015. Sustainable 5% or better annual dividend growth appears to be back in the cards for this REIT. A new higher monthly rate will be announced on October 1 with the first payment at the new rate occurring at the end of October. LTC yields 4.2%.
Macerich Co (NYSE: MAC) focuses on the acquisition, leasing, management, development, and redevelopment of regional malls throughout the United States. Currently, the company owns 50 Class A malls located across the States. Macerich has paid a growing dividend for over 20 years and has paid special dividends at the end of each of the last two years. Last year, the quarterly payout increased by 4.6%. Management guidance shows a 4.3% increase in 2016 based on funds available for distribution per share. A new dividend rate is usually announced in late October with a mid-November record date and early December payment date. MAC yields 3.4%.
If you’re interested in consistently finding dividend stocks like the four above, you can join my community of readers who use a unique tool I have developed called the Monthly Dividend Paycheck Calendar. We’ve been using it for a few years now to deliver a steady stream of monthly income for investors from safe, high-yield stocks. And unlike what the scare mongers out there offer, my Monthly Dividend Paycheck Calendar offers you a real solution whether you’re just looking for extra income or trying to make up for lost time.