I recently purchased three high-yield dividend shares in my retirement portfolio.
Lately, I've been beefing up my retirement portfolio with top-notch dividend-paying stocks. These stocks are a favorite of mine, not just for the income they generate, but also for their historical outperformance and lower volatility compared to non-dividend stocks. I've recently added some shares of Chevron, T. Rowe Price, and Mid-America Apartment Communities to my retirement account. Let me share why I believe these are high-quality dividend stocks for long-term retirement investing.
A Reliable Dividend Powerhouse
Chevron, a renowned oil giant, boasts an impressive record of paying dividends for over 35 consecutive years. Last year, it even dished out an 8% dividend increase! Chevron has consistently outdone the S&P 500 in dividend growth and does so at a higher pace than its competitors in the oil industry.
The oil company currently offers a dividend yield of over 4%, three times more than the S&P 500's dividend yield (1.2%). Its growth strategy centered around maximizing oil and gas production from its strategic assets should drive more than 10% compound annual free cash flow growth over the next decade, assuming oil prices remain steady. Chevron's robust balance sheet puts it in a strong position to achieve this, letting it fund its dividend increase and share repurchases, even in a market with lower oil prices.
A Reliable Income Growth Engine
T. Rowe Price, the global asset management company, has also been delivering dividends for 38 straight years! With its steady cash flow, driven by asset management fees, it has powered its earnings growth. Its assets under management (AUM) have expanded by 21.1%, resulting in a 18.4% increase in adjusted earnings per share. T. Rowe Price's growing AUM, fueled by its actively managed ETFs and innovative retirement solutions, should help it generate even more income and fuel dividend growth.
T. Rowe Price's dividend currently yields over 4%. Its healthy balance sheet, complete with almost $3.2 billion in cash reserves, is enough to cover its annual dividend payments for almost three years.
A Safe Haven for Income Seekers
Mid-America Apartment Communities (MAA), an apartment real estate investment trust (REIT), has provided investors with 30 years of dividend stability and growth. With its focus on attractive housing markets, the company can collect steady rental income, increasing rental rates in response to demand and population growth. Despite challenges, like a surge in new apartment supply in its markets a few years ago, MAA's portfolio and rental income continue to grow, helping it increase its dividend for 15 straight years.
MAA boasts a dividend yield of around 4%. Its strong balance sheet gives the company the financial flexibility to continue investing in expanding its apartment portfolio and growing its rents, which should enable it to continue increasing its dividend.
Chevron, T. Rowe Price, and Mid-America Apartment Communities are perfect additions to my retirement portfolio. With their reliable dividend income, growth potential, and lower volatility, they help me steadily grow the value of my retirement account.
Investing more money into Chevron's dividend-paying stocks was a smart decision, given its impressive 35-year dividend payment history and consistency in outperforming the S&P 500 in dividend growth.
Considering T. Rowe Price's history of delivering dividends for 38 consecutive years, investing money in this global asset management company can provide a reliable source of income growth.
