Vici Properties currently pays a 5.4% dividend yield. At that rate, every $100 invested into the real estate investment trust can generate $5.40 of annual dividend income. This is higher than the S&P 500’s dividend yield of around 1.3%.
The REIT has increased its dividend payment every single year since its formation, marking seven consecutive years. It has grown its dividend much faster than other REITs focused on investing in triple-net lease real estate, with a 7% compound annual growth rate compared to the 2.2% peer average. PepsiCo currently yields 3.6%.
The beverage and snacking giant has announced plans to increase its dividend by another 5% starting in June. This will extend the company’s growth streak to 53 straight years, keeping it in the elite group of Dividend Kings. PepsiCo generates plenty of cash flow, giving it the money to pay dividends and reinvest in the business.
The company’s capital spending has been about $5 billion annually over the past few years on projects to increase productivity and drive organic growth. Genuine Parts currently has a 3.5% dividend yield. The leading auto parts supplier recently hiked its payment by another 3%, extending its dividend growth streak to an impressive 69 years.
The company expects to produce $1.2 billion to $1.4 billion in net cash from operating activities this year and $800 million to $1 billion of free cash flow after capital expenditures. That’s more than enough cash to cover its dividend, which cost $555 million last year. Energy Transfer is an infrastructure giant that owns and operates more than 130,000 miles of pipelines that transport natural gas and crude oil across the United States.
The company’s assets make it a vital part of the nation’s power grid.
Consistent dividend growth and high yields
Energy Transfer is designed to pass its steadily rising profits on to investors via large cash distributions, currently yielding 7% at its current share price.
With the AI boom and deregulation set to fuel its expansion, Energy Transfer expects to grow its cash payout by as much as 5% annually. Realty Income’s diversified portfolio of properties and its prudent capital allocation strategy help to reduce the risks for investors. The REIT has stakes in more than 15,000 commercial properties leased to over 1,500 clients in 89 industries.
More than 90% of the rent it collects comes from businesses in categories that tend to hold up well during economic downturns and are insulated from the threats posed by e-commerce. Nondiscretionary, discount, and service-oriented retailers occupy more than 70% of its portfolio. Realty Income has paid 657 consecutive monthly dividends since its founding in 1969 and has built a streak of 110 straight quarterly increases.
At the current share price, those payouts give the stock a forward yield of 5.8%. TPG RE Finance controls a commercial real estate portfolio worth $3.4 billion at the end of 2024. About 52% of the company’s portfolio comprises multifamily dwellings, office spaces constitute 17.8%, life sciences facilities make up 10.8%, and hotels amount to 10.2%.
Earlier this month, TPG RE Finance declared a dividend of 24 cents per common share, scheduled for payment on April 25. This dividend annualizes to 96 cents per share, giving a forward yield of 11.96%. The company has maintained this regular quarterly dividend rate since 2022.
Ares Capital Corporation is a business development company that acts as a direct lender to small- and mid-sized businesses. The company has a solid portfolio of investments currently valued at approximately $226.8 billion, involving 550 companies backed by 241 private equity sponsors. Ares Capital Corporation’s diverse portfolio comprises 56.9% first lien senior secured loans, 9.9% preferred equity securities, and 6.9% second lien senior secured loans.
The company’s investments are distributed across multiple industries, with software & services companies making up 24.4% and health care equipment and services at 12%.
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