Three Economic Dividend Shares to Purchase for Individuals with Limited Funds of $175 or Less
Investing in dividend stocks can be a fantastic option for beginners due to their relatively low cost. You can continuously purchase more shares as you accumulate extra funds, thereby gradually amplifying your dividend revenue. Currently, some notable dividend stocks are available for under $175 per share, such as EastGroup Properties (EGP with a 3.55% yield), Mid-America Apartment Communities (MAA with a 0.13% yield), and Extra Space Storage (EXR with a 0.59% yield). Acquiring any of these three stocks will put you on the path to generating a consistent stream of passive income.
A History of Stability and Growth
Over the years, EastGroup Properties has stood out as a robust dividend stock. As a real estate investment trust (REIT), it has consistently disbursed 179 consecutive quarterly dividends and increased or maintained its payout for 32 consecutive years, elevating it 29 times during that period, including the past 13 uninterrupted years. In August, it raised its dividend by 10.2%, boosting the quarterly rate to $1.40 per share or $5.60 annually.
The current stock price is approximately $172 per share, resulting in an estimated 3.3% dividend yield – more than double the S&P 500's dividend yield of 1.2%. EastGroup Properties has amassed half its portfolio by investing $3 billion into the development of 263 properties in business park settings, which increases returns and minimizes risk. In addition to acquiring properties in its existing markets, the company typically pursues value-add opportunities like redevelopment, expansion, and leasing upside, further expanding its portfolio and rental income, which consistently enables it to uprise its dividend.
Built-in Growth Ahead
Mid-America Apartment Communities (MAA) also boasts a strong record of distributing dividends, having paid 123 consecutive quarterly dividends at the same rate or a higher one. Since 2008, the company has boosted its payment 14 times in a row, most recently increasing it by 5% in December 2022 to $1.47 per share or $5.88 annually.
MAA's stock price is currently $161 per share, resulting in an estimated 3.7% dividend yield. MAA owns an expanding portfolio of apartment communities across the Sunbelt region, prioritizing strong employment and job-growth areas. The company currently invests heavily in expanding its apartment portfolio, having invested over $450 million into five recently developed or acquired properties. Additionally, MAA plans to invest nearly $1 billion into eight additional development projects anticipated to stabilize by the upcoming years. These new investments will amplify rental income, which should perpetuate the REIT's rise in dividends.
The Leader in Its Sector
The self-storage REIT Extra Space Storage has experienced dynamic dividend growth over the past decade. While the company has not amplified its payment each year, it has boosted its dividend by approximately 250%, with its most recent hike coming in February 2023.
Currently trading at $169 per share, Extra Space Storage owns a 14% market share in the U.S. self-storage sector, having flourished through a sequence of acquisitions and other platform enhancements. The company recently merged with Life Storage in a $15 billion deal to become the U.S.'s largest self-storage market leader. Extra Space also operates the leading third-party management platform and grants bridge loans to self-storage developers, providing additional growth opportunities. These investments have contributed to the expansion of the REIT's portfolio and revenue, allowing it to lift its dividend.
Affordable Stocks for Building Dividend Income
EastGroup Properties, MAA, and Extra Space Storage are all stellar dividend stocks with impressive records of distributing dividends. While they haven't always increased their payments annually, their dividends have witnessed consistent growth throughout the decades. These stable shares with affordable price points make them excellent options for building passive, consistently growing income streams.
Given the text, here are two sentences that incorporate the words 'money', 'finance', and 'investing':
- If you're interested in investing in dividend stocks, consider allocating some of your finance to EastGroup Properties, Mid-America Apartment Communities, or Extra Space Storage, as their affordable prices make them great options for building a stable and growing income stream.
- By diligently saving money and strategically investing in stocks like EastGroup Properties, MAA, and Extra Space Storage, you can potentially generate a consistent stream of passive income, contributing to your overall financial goals.
