The 2 Best Stocks to Buy for Dividend Growth This December
The data is pretty remarkable. Companies that grow their dividends outperform all other types of stocks by a lot. Since 1972, dividend growers and initiators have delivered 10.7% total annualized returns, according to data by Ned Davis Research and Hartford Funds. That's better than companies in the S&P 500 (8.2%), non-dividend growers (7.1%), and non-payers (4.8%).
Many companies pay a growing dividend. However, only a few offer a higher-yielding payout that they can grow at an above-average rate. Two companies with excellent track records of increasing their above-average payouts at high rates are Prologis (NYSE: PLD) and NextEra Energy Partners (NYSE: NEP). That rapid dividend growth should continue, making them stand out as some of the best dividend growth stocks to buy this month.
Prologis has been a dividend growth juggernaut in recent years. The real estate industrial trust (REIT) gave its investors a 25% raise earlier this year. It has grown its dividend at a 12% compound annual rate over the last five years. That's one of the best rates in the REIT sector and more than double the 5% compound annual growth rate of the S&P 500. What makes that growth all the more impressive is that Prologis' 2.7% dividend yield is significantly higher than the S&P 500's 1.6% payout.
Source Fool.com
