3 Dividend Growth Stocks You Can Buy and Hold Forever

Investing in dividend growth stocks allows investors to benefit from both capital appreciation and a growing income stream. By focusing on companies with a history of consistent dividend increases, investors can build a portfolio that provides reliable returns over the long term. This article highlights three dividend growth stocks that have demonstrated consistent dividend growth over the past decade and are well-positioned for continued success.


1. **Extra Space Storage (EXR)**
Extra Space Storage is a leading self-storage REIT with a strong track record of dividend growth. The company has increased its dividend for 10 consecutive years, with a compound annual growth rate (CAGR) of 8.1% over the past decade. EXR's dividend growth is supported by its expanding portfolio of high-quality self-storage facilities and strong occupancy rates. The company's dividend yield is currently 4.3%, and its payout ratio is relatively low, indicating ample room for future growth.


2. **Kimco Realty (KIM)**
Kimco Realty is the largest publicly traded owner and operator of open-air, grocery-anchored shopping centers in North America. The company has increased its dividend for 11 consecutive years, with a CAGR of 13.7% over the past decade. Kimco's dividend growth is driven by its diversified portfolio of high-quality retail properties and strong occupancy rates. The company's dividend yield is currently 4.9%, and its payout ratio is relatively low, suggesting a healthy balance between dividend growth and capital appreciation.


3. **Walgreens Boots Alliance (WBA)**
Walgreens Boots Alliance, the largest retail pharmacy in the United States, has a long history of dividend growth. Although the company recently cut its dividend due to strategic changes, it had increased its dividend for 44 consecutive years prior to the reduction. Walgreens' dividend growth was supported by its strong retail pharmacy business and expanding healthcare services. The company's dividend yield is currently 4.2%, and its payout ratio is relatively low, indicating potential for future growth once the strategic changes are complete.


In conclusion, investing in dividend growth stocks like Extra Space Storage, Kimco Realty, and Walgreens Boots Alliance can provide investors with a reliable income stream and long-term capital appreciation. These companies have demonstrated consistent dividend growth over the past decade, supported by strong fundamentals and attractive valuations. By focusing on companies with a history of dividend growth, investors can build a portfolio that generates consistent returns over the long term.