I can’t wait to buy more of these 3 high yielding dividend stocks in October

Investing in dividend stocks is a significant aspect of my investment strategy. It allows me to generate passive income, which I use to amplify my income by reinvesting cash into buying more dividend-paying stocks. Dividend stocks also outperformed non-dividend payers, delivering an annualized return of 9.2%, up from 4.3% over the past 50 years, according to data from Ned Davis Research and Hartford Funds.

Dividend producers produced the highest returns at 10.2% annually, reason why I focus my attention on companies that can increase their payouts. Real estate income (A 1.10%), Mid-America Apartment Communities (MAA 0.72%)and Vici properties (VICI 0.57%) they have an excellent record of dividend growth. On top of that, they offer higher dividend yieldswhich allows me to generate more income for every dollar I invest. So I can’t wait to buy more of each in October.

However consistent they are

Real estate income offers a very attractive dividend yield these days. The diversified real estate investment trust (REIT) has a payout above 5%. It is several times larger than S&P 500 dividend yield below 1.5%.

Where Realty Income stands out is in its ability to grow its dividend. The REIT has increased its payout 127 times since going public in 1994, including for 108 straight quarters. It has grown its dividend at a compound annual rate of 4.3%, contributing to a total annualized return of 13.5%.

Acquisitions are the main driver of Realty Income’s steady dividend growth. The REIT estimates that every billion dollars of accumulated acquisitions do what will add 0.5% to its adjusted funds from operations (FFO) per share each year. It plans to make $3 billion in property acquisitions this year, in addition to its $9.3 billion merger with fellow REIT Spirit Realty. With trillions of dollars of commercial real estate, Realty Income should have no problem growing its portfolio, income and dividends.

Improving its ability to increase its dividend

Mid-America Apartment Communities currently offers a dividend yield of over 3.5%. The apartment REIT has raised its payout for 14 consecutive years, including by 5% at the end of last year.

The owner benefits from the constant increase in rental income. It owns apartment communities in the Sun Belt region, where population and jobs are growing at above average rates. This boosts demand for housing, keeping occupancy levels high and rents rising at a healthy pace.

MAA also benefits from its investments TO expand its apartment portfolio. For example, the REIT bought a recently developed apartment community in Raleigh, North Carolina. Meanwhile, it has seven new communities under development that it expects to complete in the next couple of years. It plans to start four to six more development projects in the next two years continue to expand. These new additions will enhance its ability to capitalize on rising rents, which should allow it to further increase its dividend.

A smart strategy

Vici Properties’ dividend yield is over 5%. The REIT, which focuses on holding experiential real estate such as gaming, hospitality and entertainment properties, has raised its payout for seven Justice years. That’s every year since it went public. It recently raised its payout by 4.2% and has delivered a peer-leading 7% CAGR since 2018.

New investments are the main factor driving Vici Properties’ rapid dividend growth. Acquired experiential properties from operators in sale-leaseback transactionscompleted a merger with another large gaming REIT and invested in several development projects.

The Vici Properties credit investment platform helps open doors to new investment opportunities. For example, last year he turned a loan with Chelsea Piers into a purchase of that property. Meanwhile, it recently agreed to finance the development of a Margaritaville resort. As part of the transaction, the REIT received an option to purchase that property and several sports-related properties in the development. Vici Properties’ expanding portfolio should boost its earnings, allowing the REIT to continue raising its dividend.

High Dividend Growth Stocks

Realty Income, MAA and Vici Properties offer high-yielding dividends that have grown steadily. The trio of REITs look they will likely continue to increase their payments. That’s why I can’t wait to add to my posts in October. That will allow me to collect more revenue these REITs produce while positioning my portfolio to achieve above-average total returns over the long term.