Dividend Stocks: A Larry David Take

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Let me tell you something about dividend stocks. They’re like that guy at the party who shows up late, eats all the shrimp, and still somehow leaves a great tip. Everyone loves them-except maybe me, because I’m holding out for the caviar of investments. But even I have to admit, some dividend stocks are worth paying attention to, especially in September. And by “paying attention,” I mean buying hand over fist before someone else does.

Brookfield Renewable (BEPC) (BEP) and Mid-America Apartment Communities (MAA) are two such stocks. Now, don’t get me wrong, I hate how they make me sound like a financial infomercial when I say this, but these companies have records of paying dividends so solid, it’s almost annoying. Like, why do they have to be so reliable? It’s exhausting just thinking about it.

A Record So Good It Feels Personal

Brookfield Renewable has been growing its dividend payment at a 6% compound annual rate since 2001. Yes, 2001-the year we were all traumatized by *A Beautiful Mind* and that Enron thing. And here’s the kicker: they’ve raised their payment by at least 5% annually for 14 straight years. Fourteen! Do you know how hard it is to stick to anything for 14 years? I once tried to commit to a gym membership for longer than three months, and look how that turned out.

Their current yield is 4.4%, which is nearly three times higher than the S&P 500‘s measly 1.2%. Three times! That’s like ordering a coffee and getting a triple shot without asking. Sure, you didn’t need it, but now you feel obligated to drink it anyway. Their secret? Power purchase agreements (PPAs). Brookfield sells about 90% of its power under these long-term contracts, with an average remaining term of 14 years. Most of those rates are tied to inflation, which means their funds from operations (FFO) per share will grow at a steady 2% to 3% annually. Steady growth-it’s like watching paint dry, but with money.

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But wait, there’s more. Legacy PPAs are expiring, and Brookfield is signing new ones at higher market rates. This little trick adds another 2% to 4% to their bottom line each year. Add in development projects and acquisitions, and suddenly their FFO per share is expected to grow at more than 10% annually through the end of the decade. Ten percent! At this point, I’m starting to feel personally attacked by how good they are at their job.

An Acceleration That’s Not Too Fast, Not Too Slow

Now let’s talk about Mid-America Apartment Communities. These folks haven’t missed or reduced a quarterly dividend payment in 31 years. Thirty-one years! That’s older than my toaster oven, which I refuse to replace because it still works fine. Sure, they haven’t increased their dividend every single year, but they’re currently on a 15-year streak of doing exactly that. Over the past decade, they’ve grown their payout at a 7% compound annual rate. Seven percent! That’s practically unheard of in the real estate sector, where most landlords act like Scrooge McDuck until rent day.

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They own over 104,000 apartment units, mostly in the Sun Belt region. You know, places where people actually want to live because jobs exist and winters aren’t miserable. This focus generates durable rental income that grows steadily-like mold in your fridge if you forget to clean it. Recently, rent growth in the Sun Belt has slowed due to a surge in new apartments. But guess what? Higher interest rates have put the brakes on new developments, which means demand will soon outpace supply again. And when that happens, rents will rise faster than my blood pressure during a bad traffic jam.

Oh, and did I mention they’re building nearly $1 billion worth of new apartments? These projects should help them keep increasing their 4.2%-yielding dividend. Four point two percent! It’s almost enough to make me forgive them for not offering free parking.

Terrific Stocks, Terrible Timing

So here we are. Brookfield Renewable and Mid-America Apartment Communities are both dependable, high-yielding dividend stocks with decades of proven performance. Yet, as I sit here pondering whether to buy them myself, I can’t help but think about the unspoken rule of investing: If something seems too good to be true, it probably is. Or worse, someone else already bought it, and now I’ll never hear the end of it.

Still, if you’re looking for dividend stocks to buy this September-and you should be-these two are worth considering. Just try not to brag about it too much. Nobody likes a show-off.

P.S. If anyone asks, I told you first. 🤑

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2025-09-03 13:05