7 Dividend Stocks INCREASING Payments | 82% Dividend Growth | Summary and Q&A

TL;DR

This content discusses seven dividend stocks with impressive five-year dividend growth, including one with a 66x increase. It analyzes the dividend history, investment potential, and industry prospects of each stock.

Key Insights

• ☠️ The dividend growth of these seven stocks does not guarantee future growth rates, but all the stocks prioritize dividend payouts and have a firm commitment to shareholder cash return.
• 😄 Innovative Industrial Properties (IIPR) is unique among REITs, profiting from leasing to companies in the regulated cannabis industry.
• 🥶 Devon Energy (DVN) stands to benefit from higher oil prices and has already quadrupled its free cash flow since the merger with WPX.
• 😮 First Bank (FBNC) is well-positioned to benefit from rising interest rates, potentially making it one of the few industries to profit from this trend.
• 🛀 Advance Auto Parts (AAP) has shown resilience in economic downturns, making it a safer investment option.
• 🪺 Cal-Maine Foods (CALM) maintains stable revenue and a fully integrated operation, helping to mitigate the volatility of egg prices.

Transcript

hey bowtie Nation Joseph Hogue here with a dividend stock that has increased its payment by 66 fold over the last five years that's a hundred and thirty percent dividend growth every single year and that's not even my favorite in the list I'm counting down the seven dividend stocks with the highest five-year dividend growth including one stock that... Read More

Questions & Answers

Q: How has the dividend growth of IIPR compared to other stocks on the list?

While IIPR has the slowest dividend growth rate at about 48% per year, its return on investment is the highest among the seven stocks discussed. It has increased its dividend payment from just 25 cents a share in 2017 to a dollar eighty recently.

Q: What sets NRG Energy apart from other energy producers?

NRG Energy operates in a regulated market for electric and natural gas, ensuring consistent cash flows. Its recent acquisition of Direct Energy is expected to drive cost savings and strategic growth, leading to higher dividends for investors.

Q: How has Devon Energy benefited from the increase in oil prices?

With oil prices spiking in the past two years, Devon Energy's assets have become cash flow machines. It has chosen to return cash to shareholders through increasing dividends. If oil prices rise again, Devon Energy is set for further growth.

Q: What factors determine the growth potential of First Bank?

First Bank could experience stronger dividend growth ahead due to increased interest rates. It is the largest community bank in North Carolina and has shown higher returns on tangible common equity compared to some major banks.

Summary & Key Takeaways

• The first dividend stock discussed is Innovative Industrial Properties (IIPR), which has the lowest dividend growth but the highest return on investment.

• NRG Energy (NRG) is highlighted as one of the largest energy producers in the United States, with consistent cash flows and a recent acquisition expected to drive higher dividends.

• Devon Energy (DVN) is a leading oil producer with potential for growth if oil prices rise again.

• First Bank (FBNC) is positioned to benefit from rising interest rates and has shown profitability higher than some major banks in recent quarters.

• Advance Auto Parts (AAP) offers stable cash flows and has performed well during economic downturns.

• Cal-Maine Foods (CALM) is the largest producer and distributor of fresh eggs in the United States, with a fully integrated operation and stable revenue.

• Radian Group (RDN) provides mortgage and real estate services, with growing net income and a significant increase in dividend payout.