Top Performing Dividend Shares to Acquire Instantly and Maintain for a Lengthy Investment Span
In the world of investments, dividend stocks have proven to be a reliable choice for passive income and targeted returns. Two such companies, Federal Realty Investment Trust (FRT) and S&P Global, have stood out as consistent performers, each with its own unique strengths.
Federal Realty Investment Trust, a real estate investment trust (REIT) specialising in high-quality retail-based properties, is a shining example of a successful REIT. As a REIT, FRT is obligated to distribute 90% of its taxable income to shareholders, a policy that has no doubt contributed to its popularity among income-focused investors. Moreover, FRT boasts a strong business and an impressive development pipeline, supported by steady funds from operations growth.
FRT is the only REIT to earn Dividend King status, having raised its payout for 57 consecutive years. This impressive feat places it among an elite group of companies that have increased their dividends for 50 years or longer.
On the other hand, S&P Global, a leading provider of credit ratings to entities that issue debt worldwide, has also demonstrated a commendable record of dividend growth. With a robust 50% share of the credit ratings market, S&P Global enjoys a strong competitive advantage. Furthermore, S&P Global operates in a joint venture with CME Group and provides data and analytics through its Capital IQ Pro platform, offering another stream of cash flow uncorrelated with credit ratings.
S&P Global's business model is stable and diverse, making it a resilient choice for investors. Over the past five years, its combined ratio has averaged a solid 94.6%, generating an underwriting profit. This consistency is reflected in its dividend payout, with a history of raising its annual cash dividend over the past 65 years, and a conservative dividend payout ratio of 29%.
These two companies, Federal Realty Investment Trust and S&P Global, are not the only dividend stars in the market. Equinor, Nestlé, and nVent Electric are also recommended as strong dividend stocks for passive income and targeted returns.
It's worth noting that while Cincinnati Financial was not explicitly mentioned as a dividend stock in the provided text, it does have a history of raising its annual cash dividend over the past 65 years, with a conservative dividend payout ratio.
In conclusion, dividend stocks have consistently outperformed non-dividend payers over a 50-year period with lower volatility. Whether you're looking for a steady stream of income or long-term growth, these dividend kings and top performers offer attractive investment opportunities.
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