These companies expect to continue growing their high-yielding dividends.
Stock prices have tumbled this year as investors fret over the impact rising interest rates to combat inflation will have on economic growth. A silver lining to the stock market sell-off is that dividend yields are rising. Because of that, investors can lock in some attractive passive income streams these days on companies with a long history of growing their payouts.
Three seemingly unstoppable dividend stocks are Crown Castle (CCI 3.16%), Digital Realty (DLR 2.24%), and Prologis (PLD 2.62%). With their dividend yields rising as their stock prices fall, they can help supercharge your passive income.
5G-powered dividend growth
Shares of Crown Castle have tumbled more than 40% from their peak this year. That has pushed the communications infrastructure company's dividend yield up over 5% after factoring in its recent 6.5% dividend increase. With that raise, Crown Castle has had an unbroken streak of increasing its dividend since it became a real estate investment trust (REIT) in 2014.
Crown Castle expects to face some growth-related headwinds next year. Rising interest rates will result in higher interest expenses on its non-fixed-rate debt (about 15% of its total debt). In addition, the merger of Sprint with T-Mobile is leading T-Mobile to consolidate some infrastructure, causing it to cancel some leases. As a result of these issues, Crown Castle's adjusted funds from operations (FFO) will only grow by about 4% per share next year, down from 6% in 2022.
However, its long-term growth tailwinds remain firmly in place. 5G network expansions will drive demand for additional tower space and accelerate the need for small cell nodes to boost capacity. Because of that, Crown Castle expects that it will be able to grow its high-yielding dividend at a 7% to 8% annual rate over the long term. That means it should supply investors with lots of passive income in the coming years.
Editor's Note – Pentagon consultant: Biden to win in landslide, here's how
Despite Joe Biden's age, raging inflation, and his dismal 45% approval level…
I believe he will not only run again next year, but could win a 2nd Presidential term… and by a LANDSLIDE.
Along the way, I believe Biden could become one of the most powerful Presidents in history.
How is this all possible?
Well, it's almost entirely because of a surprising July 25th “twist” that hardly anybody's talking about right now.
In short, a powerful new economic force is quietly building behind Joe Biden… and I'm confident Biden can harness this force's inevitable wave, carrying him to a LANDSLIDE re-election win. (Here's the data that proves it)
The good news is, this powerful new force can help you make a lot of money even in a bear market. I believe it will make millions of Americans vastly wealthier.
The bad news is, this July 25th twist is also likely to make Biden and the progressives more powerful than ever. That means much bigger government. And it means it's going to harder than ever to hold onto any money you make.
I don't understand why almost no one is talking about this July 25th development and what it means for the future of our country. This should be all over every American newspaper.
So after being asked to speak at the Pentagon recently in Washington DC, to address top brass at the Department of Defense, I put together an analysis of this situation, which details everything you need to know.
You can access my full brand-new analysis on my firm's website, free of charge. Click here to view…
Sincerely,
Joel Litman, CPA and Forensic Accountant
Founder, Altimetry Research
Data-driven dividend growth
Digital Realty's share price has plummeted more than 45% over the past year. That has driven the data center REIT's dividend yield up over 5%.
This sell-off comes even though “demand for data center solutions continued to be strong through the second quarter,” according to comments by CEO William Stein. The company signed new leases representing $113 million of annualized rental revenue and $173 million of renewal leases at rates 5.3% above those of expired leases.
That strong demand is leading the company to continue investing in expanding its global data center portfolio. It had 41 projects underway at the end of the second quarter, up 10% from the first quarter. The REIT had already pre-sold half this capacity, showcasing strong customer demand for data center space. Meanwhile, it acquired a majority stake in Teraco, growing its African footprint. These investments should enable Digital Realty to continue growing its dividend, something it has done every year since its initial public offering in 2004.
Enormous embedded growth
Prologis' stock price is also down about 40% this year. Because of that, the leading logistics REIT's dividend now yields about 3%.
The deep dive in Prologis' shares comes despite the continued strength of the warehouse market. The company delivered record same-store net operating income (NOI) growth of 9.3% in the third quarter. A big driver was the jaw-dropping 59.7% increase in rental rates for leases signed in the quarter, driven by surging demand for warehouse space. Meanwhile, occupancy was also at a record high at 97.8% at the end of the period.
Prologis still sees significant growth ahead. The current gap between rates on existing leases and market rents widened to 62% in the third quarter. Because of that, the company expects its same-store NOI to grow at an 8% to 10% annual rate for the next several years as existing leases expire and roll over the market rents. That's assuming no further rent growth, which seems unlikely. On top of that, the company will benefit from its recent acquisition of Duke Realty and its extensive development pipeline. That growing FFO should enable Prologis to continue increasing its dividend. It gave investors a 25% raise earlier this year and has grown its dividend at a peer-leading double-digit rate over the last several years.
Editor's Note: Biden to introduce “Biden Bucks”?
Dear American citizen,
I believe President Biden plans to retire the US dollar we know…
…and replace it with a digital “spyware” currency.
Your US dollars could be confiscated – or made worthless.
>>Click here to see how to protect your investment and retirement accounts.
Regards,
Jim Rickards
Economist; Former advisor to Pentagon and CIA
P.S. Update: It is underway. On March 9, Biden signed Executive Order 14067, which could pave the way for the new US currency I call Biden Bucks. AOC tweeted her support. Dems could use this to hold onto power indefinitely. Please view this warning now.
Great ways to boost your passive income
With shares of Crown Castle, Digital Realty, and Prologis all tumbling more than 40% this year, they now offer much higher dividend yields. Because of that, passive income seekers can lock in a large income stream that should rise in the coming years. That makes them great ways to supercharge your passive income these days.
Read Next: Where to invest $50 right now…
Before you consider trading any of the stocks in our reports, you'll want to see this.
Investing Legend Ross Givens just revealed his #1 stock for 2023.
And it's not in any of our reports…
After managing hedge funds for one of the world's largest banks, he's decided to go “all-in” on the one stock that could make investors rich in 2023.
You can view it on Mr. Givens's website, here.
Wondering what stock I'm talking about?
Click here to watch his presentation and learn for yourself.
But you have to act now because a catalyst coming in a few weeks is set to take this stock mainstream… And by then, it could be too late.
Click here to reveal Ross Givens's #1 stock for 2023…
