Top 2 dividend stocks I plan to buy and more this September

Dividend stocks are proven wealth builders. The average dividend stock has delivered above-average annual total returns over the long term, with the highest returns coming from companies that consistently increase their dividends. The average dividend producer has delivered an annualized total return of 10.2% over the past five decades, compared to 7.7% for the average member of S&P 500according to data from Hartford Funds and Ned Davis Research.

This data prompts me to upload my portfolio increasing dividends stocks. I try to buy more each month to build my wealth. Top of my September list is Brookfield Renewables (BEPC -2.88%) (BEP -2.25%) and Rexford Industrial Realty (REXR -0.04%). Here’s why I plan to buy more of these tops as well shares with dividends this month.

A powerful income generator

Brookfield Renewable has done an excellent job increasing its dividend over the years. The global leader renewable energy the producer has grown its payout at a compound annual rate of 6% over the past 20 years. It has offered annual dividend increases of at least 5% for 13 Justice years.

The company’s high yield, currently hovering around 5%, and steadily growing dividend have helped give it the power to produce strong total returns. Over the past decade, Brookfield has generated an annual average of 10.8%. total return.

Brookfield Renewable should have enough strength to continue raising its dividend going forward. It expects to grow its funds from operations (FFO) by more than 10% annually by 2028. Several factors drive this forecast. Brookfield expects organic growth factors such as inflation-linked contract rate increases, margin improvement activities and its massive renewable energy project development pipeline to drive annualized FFO per share growth of 7% to to 12% by 2028. In the meantime, it anticipates increased purchases. pushing its growth rate over 10% annually. This forecast easily supports its plan to increase its dividend by 5% to 9% annually over the long term. Add its high yield to its high growth rate, and Brookfield Renewable could generate average annual total returns in the mid-teens here.

Focusing on a prime location continues to pay off big DIVIDENDS

Rexford Industrial Realty has been a dividend growth juggernaut. The Industrial REIT increased his pay every year since going public in 2013. It has delivered a compound annual dividend growth rate of 18% over the past five years, nearly double that THE 10% compound annual growth rate. of his peers. This has helped generate a compound annual total return of around 15% for its shareholders since going public.

The REIT grew rapidly by focusing on the high-demand, supply-constrained Southern California industrial market. These market fundamentals are keeping occupancy rates high, leading to robust rent growth. Rexford Industrial Realty continues to capitalize on this market through increased acquisitions.

Rexford Industrial Realty recently purchased a high quality portfolio of 48 properties from Blackstone in a $1 billion business. These properties come with built-in growth from future rent increases. This acquisition contributed to a 20.9% increase in the REIT’s net operating income in the second quarter and an 11.1% increase in FFO per share.

The company has a lot of built-in growth ahead of that baseline. It sees a mix of repositioning and redevelopment projects, built-in contractual annual rent increases, market markup rent increases as legacy leases expire and recent investments increase net operating income by 35% over the next three years. Meanwhile, future increased acquisitions would further boost the growth rate. With a fortress-like balance sheet, Rexford has sufficient liquidity to capitalize on increased acquisition opportunities as they appear. Those visible growth catalysts should allow the REIT to further increase its dividend, which currently yields more than 3%.

Dividend Growth Stocks That Create Wealth

Brookfield Renewable and Rexford Industrial Realty have done fantastic jobs by increasing them dividends over the years. That allowed them to grow shareholder values by delivery totally strong he returns. Both have plenty of visible growth ahead of them and should have no problem increasing their payouts and generating totally strong returns in the future. That’s why I plan to add to my positions each again this month.