Two Dividend-Yielding Shares Warrant Increased Investment Immediately
Dividend investing can be a lucrative venture, and two companies currently shining in this space are Enbridge (ENB -0.18%) and Mid-America Apartment Communities (MAA 1.35%). If you're already invested in these dividend giants, consider doubling down, or better yet, jump on board if you're on the sidelines. Both companies have a solid history of dividend growth and shareholder value creation.
Enbridge: The Dividend Powerhouse
Enbridge is renowned for its unwavering commitment to dividend payouts. With an impressive streak of 69 years of dividend payments and 29 years of consecutive dividend growth, this Canadian pipeline and utility operator has earned its title as a dividend powerhouse. Add in a generous 6% dividend yield, currently above its average of the past decade, and you have a compelling case for divestment.
Enbridge isn't resting on its laurels. The company anticipates growth in adjusted EBITDA by 7% to 9% annually through 2026. This growth is driven by expansion projects and acquisitions, such as the recent purchase of three U.S. gas utilities. The projections point to a 3% annual cash flow per share growth rate, a slight deceleration due to higher share counts and tax legislation. Post-2026, Enbridge expects its growth rate for adjusted EBITDA and cash flow per share to settle around 5%. With a 6% dividend yield and 3–5% annual cash flow growth ahead, Enbridge's future looks bright, setting the stage for double-digit annual total returns.
MAA: On the Cusp of a Breakout
Mid-America Apartment Communities, a real estate investment trust (REIT) focused on apartments, pays a dividend yielding over 3.5%, currently near the high end of its average over the past decade. This company's strong track record of 30 years of dividend stability and growth has earned it a well-deserved place in the hearts of investors.
While MAA hasn't boosted its dividend every year, it has increased it for 14 consecutive years, including a 5% hike late last year. This history of income and growth has translated to exceptional total returns for investors. Over the last 10, 15, and 20 years, MAA has outperformed its peers in each period, yielding average annual total shareholder returns of more than 11.5%.
MAA is poised to capitalize on the shifting rental market. After facing challenges from elevated new apartment supply, the company anticipates a noticeable decline in new supply beginning in 2025. With its CEO confident in this growth opportunity, MAA is investing $1 billion in additional apartment developments to capitalize on the shift, with completion expected through 2027.
These projects, along with ongoing acquisitions and modernizing existing apartments, put MAA in prime position to continue increasing its dividend, ensuring that attractive total returns will continue to flow.
Buy and Hold with Confidence
Enbridge and MAA's appetizing dividend yields and promising earnings growth make them ripe and ready for doubling down. The income and growth combo make these stocks tantalizing options for any serious investor's portfolio.
In the realm of finance and investing, Enbridge's commitment to dividend payouts has been unparalleled for 69 years, with 29 consecutive years of dividend growth. This has earned the company a generous 6% dividend yield, higher than its average of the past decade. (Enbridge: The Dividend Powerhouse)
Mid-America Apartment Communities also boasts a strong history in dividend payments, with 30 years of dividend stability and growth, and a current dividend yield of over 3.5%, close to its average over the past decade. (MAA: On the Cusp of a Breakout)
