Three Dividend Giants to Buy in September

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In the world of investment, where the cacophony of short-term noise often drowns out the whispers of long-term value, there exists a quiet realm where patience is rewarded handsomely. Dividend stocks, in their humble yet steadfast way, have proven time and again that they are among the finest companions for the patient investor. Over the past five decades, these reliable payers have not only outshone their non-dividend-paying counterparts, but have done so by a margin so considerable it seems almost too poetic: more than two to one.

According to the sober research of Ned Davis and Hartford Funds, dividend payers have delivered an average annual return of 9.2%, compared to a mere 4.3% for those who, though filled with promise, neglect to offer a tangible return to their shareholders. But the truly exceptional-the companies that consistently raise their dividends-have offered returns far beyond the ordinary, with a striking 10.2% annual growth. It is a testament to the profound power of reliable, compounded returns.

As September beckons, there are three stocks in particular that stand as towering giants in the field of dividend growth. Brookfield Asset Management, Rexford Industrial Realty, and Mid-America Apartment Communities are not mere fleeting successes, but formidable forces in the world of dividends-powerhouses capable of both yielding steady payouts and achieving robust growth in the coming years.

A Visionary Approach to Growth

Brookfield Asset Management (BAM) stands apart like a seasoned mariner navigating the ever-shifting waters of global investment. With a dividend yield that hovers around 3%, Brookfield’s payout more than doubles the modest offering of the S&P 500 (1.2%). But it is not just the yield that attracts; it is the unwavering management fee income that supports this consistent generosity. With more than $1 trillion in assets under management, Brookfield’s empire is vast, but it is the $549 billion of fee-generating capital that holds the true promise of growth.

The company, in its quiet and unassuming way, has the audacity to aim for a further doubling of its fee-bearing capital by 2029, with a projected annual fee-related earnings growth of 17%. As an investor, one cannot help but feel the weight of this ambition. And with the expectation of harvesting carried interest by 2029, it is clear that the road ahead is paved with promising returns. As such, Brookfield plans to raise its dividend by a healthy 15% per annum over the coming years-a figure that, to the prudent investor, seems not merely achievable, but inevitable.

Strength in Stability and Expansion

Rexford Industrial Realty (REXR) brings a quieter, more understated appeal, but one no less potent. Yielding approximately 4%, this real estate investment trust (REIT) offers a dividend underpinned by the solidity of stable rental income. Its 422 industrial properties in Southern California, leased to over 1,600 tenants, are the very embodiment of a market that is not only thriving but constrained, ensuring high occupancy rates and a steady stream of rental income.

Over the past five years, Rexford has achieved an admirable compound annual growth rate of 13% in funds from operations (FFO), with its dividend growing at a commendable 15%. But the true beauty of Rexford lies in the intricacies of its leases-contracts that are steeped in long-term commitment, with annual rental increases of 3.7% embedded in its agreements. These seemingly small increments will lead to an additional $105 million in net operating income in the coming years, all while market rents continue to rise, pushing rents even higher. Add to this a series of repositioning projects that will bring in another $70 million once stabilized, and one cannot help but marvel at the quiet but certain growth ahead. It is no wonder that Rexford is expected to continue increasing its dividend at an above-average rate.

Enduring Strength in the Sun Belt

Mid-America Apartment Communities (MAA), a multifamily REIT, is another stalwart in the dividend landscape, with a yield comfortably over 4%. This company has increased its dividend for 15 consecutive years, growing it at an annualized rate of 7%, a remarkable achievement in an era where growth often feels elusive. The secret to its success lies not in grandiose claims but in steady, organic expansion in the Sun Belt, an area that has long benefitted from a demand for rental housing that only intensified post-pandemic.

Although recent years have seen a slowing in rent growth, the combination of higher interest rates and a slowdown in new developments has set the stage for a surge in rent growth. Mid-America is poised to capitalize on this shift, with nearly $1 billion in construction projects underway. These projects will add incremental income as they stabilize over the next several years, ensuring that the company remains in a position to sustain its impressive dividend track record.

The Undeniable Appeal of Dividend Growth

Each of these companies-Brookfield, Rexford, and Mid-America-stands as a testament to the power of dividends not as a mere byproduct of business success, but as a pillar that supports both income and growth. They represent not just high yields but a dedication to long-term growth and value creation. These are not companies whose fortunes are determined by the whims of the market, but by their own deliberate and strategic actions, executed with a precision that is rare in today’s ever-changing world.

For the long-term investor, these dividend stocks are a reminder that the true path to wealth is often quiet, steady, and resolute. As we move into September, these three stocks are not merely investments-they are opportunities to partake in the silent but steady growth that has, over the years, proven to be the most reliable engine of wealth. 💸

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2025-09-06 11:48