Sign up for our Moneywise newsletter to receive a steady flow of actionable ideas from Wall Street's top firms.
First Bancorp (FNLC)
Compared to the financial juggernauts on Wall Street, First Bancorp is a rather small institution. The bank has $2.5 billion in assets and provides commercial and retail banking services through its 18 locations in mid-coast and eastern Maine.
But there is a good reason to check out this under-the-radar stock: dividend growth.
Five years ago, the bank was paying quarterly dividends of 23 cents per share. Today, it pays 32 cents per share — marking a payout increase of 39%. The stock currently yields 4.3%.
The company has a solid business to back its generous shareholder returns. In Q1 of 2022, First Bancorp’s net income grew 8.8% year over year to $9.7 million. And its first-quarter dividend represented just 36% of its earnings per share for the period.
A conservative payout ratio leaves a margin of safety and room for future dividend hikes.
Considering that management last raised the company’s dividend in June 2021, they might want to continue the streak this year, too.
Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too. Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.
Invest NowKroger (KR)
In an era where physical stores are under serious threat from online merchants, Kroger remains a brick-and-mortar beast.
Shares of the supermarket giant are up 16% in 2022, in stark contrast to the S&P 500 Index’s 14% year-to-date decline.
The economy moves in cycles, but people always need to shop for food. As a result, Kroger can make money through our economy’s ups and downs.
The company has expanded its online presence, too. Kroger’s digital sales in 2021 clocked in 113% higher compared to two years ago.
With a dividend yield of 1.6%, Kroger may not get the attention of yield-hungry investors. But its payout has been consistently on the rise. Its last dividend hike was a 17% increase announced in June 2021.
Given how well the company’s business has been doing, another payout increase should be right around the corner.
Realty Income (O)
If you follow real estate stocks, you’ve probably heard of Realty Income. The San Diego-based REIT has a portfolio of over 11,000 properties that are under long-term lease agreements with its commercial tenants.
Commercial real estate was impacted heavily by the pandemic. But Realty Income didn’t have to worry too much because of its diversified tenant base. Its top 10 tenants also include pandemic-proof companies such as Walmart, FedEx, and Walgreens.
In fact, the company collects around 43% of its total rent from investment-grade tenants. A diversified, high-quality tenant base allows Realty Income to pay reliable dividends.
Since the company was founded in 1969, it has paid 622 consecutive monthly dividends. Moreover, the REIT has announced 115 dividend increases since its listing on the NYSE in 1994, with the last 98 being consecutive quarterly increases.
The stock provides a generous yield of 4.3%. Based on its past schedule, Realty Income’s next dividend announcement — which should come in June — will likely be an increase.
Sign up for our Moneywise newsletter to receive a steady flow of actionable ideas from Wall Street's top firms.
Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too. Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.
Invest NowMore from Moneywise
- ‘It’s so horrible that I want to buy it’ — Jim Cramer likes these 2 beaten-down tech names that are still posting white-hot revenue growth
- Goldman Sachs likes these 3 top dividend stocks yielding as high as 7.6% — in a manic market, locking down a growing income stream makes sense
- Warren Buffett just said he doesn’t own bitcoin because ‘it isn’t going to do anything’ — he’d rather own these 2 tangible assets instead
Sponsored
Get a piece of commercial real estate
Enhance your portfolio with high-return commercial real estate
First National Realty Partners is the #1 option for accredited investors seeking superior risk-adjusted returns in the grocery-anchored necessity-based retail space.
While commercial real estate has always been reserved for a few elite investors, outperforming the S&P 500 over a 25-year period, First National Realty Partners allows you to access institutional-quality commercial real estate investments — without the leg work of finding deals yourself.
Invest with First National Realty Partners now.
