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: Tiny $4 company to steal billions from Tesla?
Every single Tesla electric vehicle is powered by a lithium-ion battery.
It transformed Tesla from the laughing-stock of the auto industry into the biggest car company in history.
But according to Bloomberg… This new battery technology “could eat lithium's lunch.”
It's a “breakthrough,” says the U.S. Department of Energy. That's a “totally new approach to battery technology.”
Powermag says it is “the trillion-dollar holy grail” of battery technology.
And that's just the beginning… Because according to Forbes, a $130 trillion revolution in energy is coming.
And this new battery could be at the center of it all.
Best part… Right now, one tiny company behind this new battery technology trades for around $4.
It's such a huge opportunity, five billionaires have already invested.
Bill Gates, Jack Ma, Richard Branson, Michael Bloomberg, and Jeff Bezos are all backing this tiny company.
And the reason is simple.
This new battery can store energy up to 94% cheaper than a Tesla lithium-ion battery.
I urge you to click here to check out the full story.
And lock in shares now for $4…
Not $40 or $400 – or $900 like Tesla shares trade for now. Click here for the full story.
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: The single best investment to make TODAY!
Right now, right here in this email, I'm going to NAME what I believe is the single best investment you could make today.
This is no ordinary investment:
> First, there is ZERO risk. It's impossible for you to lose even a penny.
> Second, this investment is beyond cheap. Your cost is $0, and yet your returns could be enormous.
> And third, if we're right about the events that are about to occur, the profit potential is off the charts.
I know – it sounds impossible.
But I assure you: It's anything but.
So, what is this “impossible investment”?
CLICK THIS LINK, then invest just a bit of your TIME to view this vital all-in-one video of our three days of emergency briefings.
This video is free. You can watch it risk-free. And I think the facts they reveal could be more valuable than you may realize – and in more ways than one.
Sean Brodrick and I deliver the single most important forecast in the 50-year history of my company: the surprising chain of events that are about to rock the economy and markets starting almost immediately.
We give you our proprietary strategy for piling up historic profits – not just this year, but for the next FIVE years.
And we name the investments specifically designed for times like these.
It's the classic win-win: You have nothing to lose and everything to gain.
If you don't want to miss the opportunity, watch now and it will begin playing on your screen immediately.
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…
