My 10 Dividend Growth Stocks in 2021
We are continue to growth our Dividend Growth Portfolio. In 2021, we will buy Dividend Stock that would give us the Capital Appreciation and steady income from dividend payments
We will buy stock that follow these qualities:
- They have history of continuous paying dividend.
- They are growing dividend in the last 5 years.
- They have good growing revenue and income.
- Companies with strong hold on the growing market
Below is our list of my 10 dividend growth stocks that we will buy in 2021. These stocks are the core of our holdings, so we plan to keep these stocks forever. In addition, my plan is to have each of the ‘Forever Holding’ Dividend stock generating at least $1,000 of dividend income per year.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns two electric companies in Florida: Florida Power & Light Company, which serves more than 5 million customer accounts in Florida and is the largest rate-regulated electric utility in the United States as measured by retail electricity produced and sold; and Gulf Power Company, which serves approximately 470,000 customers in eight counties throughout northwest Florida. NextEra Energy also owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage.
- Sector: Utilities
- Industry: Utilities—Regulated Electric
- PE Ratio: 33.72
- Dividend: $1.40
- Dividend Yield: 1.81%
- 5 Year Dividend Growth: 12.70%
- Dividend Payout Ratio: 61.19%
- Dividend Increase Streak: 25 years
The utility company has paid dividends for 31 years to its shareholders. In February 2020, NextEra announced a 12.0% increase to its dividend per share, increasing the quarterly dividend to $0.35. This translates into $0.15 dividend per share on an annualized basis for 2020. Over the past 10 years, the dividend has grown at an average compound annual growth rate of 10.84%. During the past ten-year period, the first annual payment was $0.50 in 2010, compared to $1.40 in 2020.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make TD Bank your core holding. The total return for the period with the said amount is 700% or $80,000 including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 700% in 10 years?
Overall, NextEra is one of the few stocks with capital appreciation, dividend growth and a good dividend yield. With all reasons above, NextEra will be our dividend growth stock to buy in 2021. Currently, we are owning 100 shares of NEE and generating $140/year. In 2021, we will continue to add more shares until we reach 200 shares.
Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide.
- Sector: Technology
- Industry: Semiconductors
- PE Ratio: 69.19
- Dividend: $14.40
- Dividend Yield: 3.29%
- 5 Year Dividend Growth: 52.10%
- Dividend Payout Ratio: 55.21%
- Dividend Increase Streak: 9 years
The Semiconductor Company has paid dividends for 9 years to its shareholders. In December 2020, AVGO announced a 10.80% increase to its dividend per share, increasing the quarterly dividend to $3.60. This translates into $14.40 dividend per share on an annualized basis for 2020. Over the past 10 years, the dividend has grown at an average compound annual growth rate of 47.69%. During the past ten-year period, the first annual payment was $0.40 in 2010, compared to $14.40 in 2021.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make AVGO your core holding. The total return for the period with the said amount is 1,905.80% or $200,619.19 including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 34.97%?
Overall, Broadcom is one of the few stocks with capital appreciation, dividend growth and a good dividend yield. With all reasons above, Broadcom will be our dividend growth stock to buy in 2021. Currently, we are owning 20 shares of AVGO and generating $288/year. The price for AVGO is at all time high, but if you want premium company we have to buy at a higher price. Therefore, we will continue to dollar cost average to buy more shares until we have at least 50 shares.
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: Americas, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, and iced tea; and various food products, such as pastries, breakfast sandwiches, and lunch items.
- Sector: Consumer Cyclical
- Industry: Restaurants
- PE Ratio: 135.42
- Dividend: $1.80
- Dividend Yield: 1.68%
- 5 Year Dividend Growth: 19.83%
- Dividend Payout Ratio: 63.75%
- Dividend Increase Streak: 10 years
The restaurant has paid dividends for 11 years to its shareholders. In September 2020, SBUX announced a 10.0% increase to its dividend per share, increasing the quarterly dividend to $0.45. This translates into $1.80 dividend per share on an annualized basis for 2020. Over the past 10 years, the dividend has grown at an average compound annual growth rate of 10.84%. During the past ten-year period, the first annual payment was $0.13 in 2011, compared to $1.80 in 2021.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make SBUX your core holding. The total return for the period with the said amount is 659.45.37% or $75,971.69 including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 22.48%?
Overall, Starbuck is one of the few stocks with capital appreciation, dividend growth and a decent dividend yield. With all reasons above, Starbucks will be our dividend growth stock to buy in 2021. Currently, we are owning 59 shares of SBUX and generating $106.20/year. The price for SBUX is very expensive at PE 135, and its forward PE ration is 37.04. For premium company, we have to pay higher price to get them. Therefore, we will monitor and buy until we own at least 100 shares of SBUX by the end of 2021.
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.
- Sector: Technology
- Industry: Software—Infrastructure
- PE Ratio: 35.88
- Dividend: $2.24
- Dividend Yield: 1.01%
- 5 Year Dividend Growth: 10.13%
- Dividend Payout Ratio: 33.23%
- Dividend Increase Streak: 17 years
This software giant has paid dividends to shareholders for 17 years. In September 2020, MSFT announced a 9.80% increase to its dividend per share, increasing the quarterly dividend to $0.56. This translates into $2.24 dividend per share on an annualized basis for 2020. Over the past 10 years, the dividend has grown at an average compound annual growth rate of 13.69%. During the past ten-year period, the first annual payment was $0.64 in 2011, compared to $2.40 last year. Dividends per share have grown at approximately 13.69% per year over this time.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make Microsoft your core holding. The total return for the period with the said amount is 899.82% or $99,979.82, including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 25.89%?
Overall, Microsoft is one of the few stocks with capital appreciation, dividend growth and a safe dividend. With all reasons above, MSFT will be our dividend growth stock to buy in 2021. Currently, we are owning 70 shares of MSFT and dripping $156.80/year. Currently, the price is quite expensive; therefore we will continue to monitor and buy more shares of MSFT until we have 100 shares.
BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. BlackRock is famous for its iShares ETFs
- Sector: Financial Services
- Industry: Asset Management
- PE Ratio: 23.96
- Dividend: $14.52
- Dividend Yield: 2.01%
- 5 Year Dividend Growth: 10.74%
- Dividend Payout Ratio: 45.30%
- Dividend Increase Streak: 11 years
This investment firm has paid dividends to shareholders every year since 2003. In February 2020, BLK announced a 10.00% increase to its dividend per share, increasing the quarterly dividend to $3.63. This translates into $14.52 dividend per share on an annualized basis for 2020. Over the past 10 years, the dividend has grown at an average compound annual growth rate of 10.74%. During the past ten-year period, the first annual payment was $2.00 in 2011, compared to $14.52 last year. Dividends per share have grown at approximately 10.74% per year over this time.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make BlackRock your core holding. The total return for the period with the said amount is 394.68% or $42,875.32, including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 17.34%?
Enghouse Systems Limited develops enterprise software solutions worldwide. It operates through two segments, Interactive Management Group and Asset Management Group.
- Sector: Technology
- Industry: Software—Application
- PE Ratio: 34.83
- Dividend: $0.54
- Dividend Yield: 0.88%
- 5 Year Dividend Growth: 16.20%
- Dividend Payout Ratio: 31.25%
- Dividend Increase Streak: 13 years
The company has paid dividends to shareholders every year since 2008. In May 2020, ENGH announced a 22% increase to its dividend per share, increasing the quarterly dividend to $0.135. This translates into $0.54 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $0.145 in 2010, compared to $0.54 in 2020. Dividends per share have grown at approximately 18.11% per year over this time.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make ENGH your core holding. The total return for the period with the said amount is 1,541.96%, or $164,159.27 including reinvested dividends. Where else can you find a high-quality investment that delivers an average annual total return of 32.30%?
Algonquin Power & Utilities Corp. is a $10 billion regulated utility and renewable company that operates in North America. It generates and sells electrical energy through non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with generating capacity of approximately gigawatt; and regulated electric, natural gas, water distribution, and wastewater collection utility systems.
- Sector: Utilities
- Industry: Utilities-Renewable
- PE Ratio: 25.86
- Dividend: $0.62
- Dividend Yield: 3.80%
- 5 Year Dividend Growth: 10.01%
- Dividend Payout Ratio: 94.93%
- Dividend Increase Streak: 11 years
The company has paid dividends for over 16 years to its shareholders. In May 2020, AQN announced a 10 % increase to the dividend, increasing the quarterly dividend to $0.1551. This translates into $0.62 dividend per share on an annualized basis for 2020. During the past ten-year period, the first annual payment was $0.26 in 2011, compared to $0.62 in 2020. Dividends per share have grown at approximately 9.32% per year over this time.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make AQN your core holding. The total return for the period with the said amount is 360.17% or $46,013.63, including reinvested dividends. This high-quality investment delivers an average annual total return of 16.49% in the last 10 years
Overall, AQN has all key ingredients for a top dividend growth stock: long dividend streak, good dividend growth history, high dividend yield comparing to its peers, above average earning growth. Because of these reasons, AQN is currently in the top 10 holding of our portfolio. Currently, we are holding 894 shares of AQN and generating $733.08/year of dividend income. In conclusion, we will continue to add more shares until we reach $1000/year of dividend income.
Brookfield Renewable Energy is a global leader in hydroelectric power, which comprises approximately 64% of its portfolio. It is also an experienced owner, operator and investor of global wind, solar, distributed generation, and storage facilities.
Its portfolio consists of approximately 19,300 MW of capacity and 5,301 generating facilities in North America, South America, Europe and Asia. Its investment objective is to deliver long-term annualized total returns of 12%-15%, including annual distribution increases of 5–9% from organic cash flow growth and project development. It has an established track record of creating value by prudently acquiring, building and financing assets, and actively managing its operations.
- Sector: Utilities
- Industry: Utilities-Renewable
- PE Ratio: N/A
- Dividend: $1.16 (shares Split recently)
- Dividend Yield: 2.68%
- 5 Year Dividend Growth: 3.30%
- Dividend Payout Ratio: N/A
- Dividend Increase Streak: 0
Brookfield Renewable Energy has paid dividends for over 20 years to its shareholders. In February 2020, Brookfield Renewable Energy announced a 5.3 % increase to the dividend, increasing the quarterly dividend to $0.5425. This translates into $2.16 dividend per share (Before Split) on an annualized basis for 2020.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make Brookfield Renewable Energy your core holding. The total return for the period with the said amount is 492.32% or $59,236.40, including reinvested dividends. This high-quality investment delivers an average annual total return of 19.47% in the last 10 years.
Overall, Brookfield Renewable Energy has all key ingredients for a top dividend growth stock: long dividend streak, good dividend growth history, high dividend yield comparing to its peers, above average earning growth. Because of these reasons, Brookfield Renewable Energy will be on our buy list in 2021. Currently, we are holding 347 shares of Brookfield Renewable Energy and generating $511.84/year of dividend income. In conclusion, we will continue to add more shares until we reach $1000/year of dividend income.
goeasy Ltd. is a Canadian company headquartered in Mississauga, Ontario, that provides non-prime leasing and lending services through its easyhome and easyfinancial divisions. With a wide variety of financial products and services including unsecured and secured instalment loans, goeasy aspires to help put Canadians on a path to a better financial future as they rebuild their credit and graduate to prime lending.
- Sector: Financial Services
- Industry: Credit Services
- PE Ratio: 15.89
- Dividend: $1.80
- Dividend Yield: 1.86%
- 5 Year Dividend Growth: 34.19%
- Dividend Payout Ratio: 29.01%
- Dividend Increase Streak: 16 years
This stock has paid dividends for over 16 years to its shareholders. In March 2020, goeasy announced a 45 % increase to the dividend, increasing the quarterly dividend to $0.45. This translates into $1.80 dividend per share on an annualized basis for 2020. During the past 16 year period, the first annual payment was $0.16 in 2004, compared to $1.80 in 2020. Dividends per share have grown at approximately 27.95% per year over this time.
The historical return of a $10,000 investment in the last 10 years will firm up your decision to make GSY your core holding. The total return for the period with the said amount is 1236.39% or $142,601.04, including reinvested dividends. This high-quality investment delivers an average annual total return of 30.45% in the last 10 years.
Overall, goeasy qualifies as growth, dividend and value stock. The earning has grown 30% year over year in the past five years. Currently, we are holding 155 shares of goeasy and generating $279.00/year of dividend income. In conclusion, we will continue to add more shares until we are able to drip a full share from goeasy.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospitals with approximately 385 facilities and roughly 42,000 licensed beds in nine countries and across four continents on a pro forma basis. MPT’s financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.
- Sector: Real Estate
- Industry: REIT—Healthcare Facilities
- P/FFO Ratio: 13.92
- Dividend: $1.08
- Dividend Yield: 4.96%
- 5 Year Dividend Growth: 4.18%
- Dividend Payout Ratio: 69.01%
- Dividend Increase Streak: 7 years
The dividend growth has just been as good! It started paying a dividend in 2006. In the past 7 years, its dividend growth averaged 3.59% per year. And its five- and 10-year dividend-growth rates were 4.18% and 3.05%, respectively. In July 2020, Medical Properties Trust announced a 3.8 % increase to the dividend, increasing the quarterly dividend to $0.27. This translates into $1.08 dividend per share on an annualized basis for 2020.
The historical return of a $10,000 investment from Jan 2011 to Jan 2021 will firm up your decision to make MPW your core holding. The total return for the period of 10 years with the said amount is 288.85% or $38,900.12, including reinvested dividends. This high-quality investment delivers an average annual total return of 14.55% from Jan 2011 to Jan 2021.
Overall, Medical Properties Trust is an excellent REIT with good yield and safe dividend.. Currently, we are no holding and planning to add shares of this REIT in 2021.
Conclusion
There are other companies that could make the list of my 2021 dividend stocks. We believe this list providing strong dividend income growth, and excellent capital appreciation.
If you are dividend investor, it is more valuable to focus on dividend growth instead of yield. The following criteria should be based on for picking a good dividend growth stock: P/E ratio, payout ratio, current yield, paying dividend history and the 5 and 10 year annual dividend growth rate.
Thanks you for reading our blog.
Sam
Disclaimer
I am not a licensed investment Advisor or Tax professional; Therefore all content posted on this blog represents my personal views and opinions and should never be considered as professional advice. This blog should be viewed for entertainment or educational purposes only. Not a recommendation to buy/sell certain stocks. Please do your own research before buy/sell stocks.
We try our best to provide the accuracy of the information; however we does not guarantee the accuracy of the information on this page due to the dynamic nature of the information provided.
We own shares of all companies in the above list.
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