High yield securities offer more than just a steady income stream – they have the power to compound income over time. There are three key drivers behind this compounding effect:
- Reinvesting dividends
- Dividend growth on a per share basis
- Time the investment is held
When you invest in high-yield securities, reinvesting dividends can accelerate the compounding of your income. This strategy allows you to grow your income stream at a faster rate, especially with higher yields. By reinvesting dividends, you can generate income growth until you need it for personal finance reasons.
However, not all high-yield securities offer rising dividends on a per share basis. When you find stocks with both high current yields and dividend increases, you have a winning combination for income compounding. These high yield dividend compounders can maximize your income potential while providing security and stability in your investments.
Let’s explore 10 high yield dividend compounders, ranked by their 5-year dividend growth rate, from lowest to highest:
- Evergy Inc. (EVRG)
- Dividend Yield: 4.3%
- Dividend Growth Rate: 5.0%
Evergy is an electric utility company serving millions of customers in Kansas and Missouri. The company has shown steady growth and reaffirmed positive guidance for the future.
- Spire Inc. (SR)
- Dividend Yield: 6.2%
- Dividend Risk Score: B
Spire is a public utility company with a long track record of dividend growth and stable financial performance. The company continues to deliver value to its shareholders.
- Flowers Foods, Inc. (FLO)
- Dividend Yield: 4.7%
- Dividend Growth Rate: 5.1%
Flowers Foods is a leading bakery foods producer with a diverse product portfolio. The company’s consistent dividend growth reflects its solid business fundamentals.
- RGC Resources, Inc. (RGCO)
- Dividend Yield: 4.2%
- Dividend Growth Rate: 5.2%
RGC Resources is a natural gas distributor that has shown resilience in its earnings and dividends growth despite market challenges. The company’s focus on customer segments contributes to its strong performance.
- CVS Health Corp. (CVS)
- Dividend Yield: 6.1%
- Dividend Growth Rate: 6.0%
As a healthcare services provider, CVS Health offers stability and growth potential for income investors. The company’s diversified business model ensures consistent performance and value creation.
- Eversource Energy (ES)
- Dividend Yield: 5.0%
- Dividend Growth Rate: 6.0%
Eversource Energy is a reliable utility company with a focus on sustainable energy solutions. The company’s commitment to growth and innovation drives its dividend and income potential.
- Portland General Electric (POR)
- Dividend Yield: 4.6%
- Dividend Growth Rate: 6.0%
Portland General Electric is a prominent energy provider known for its consistent dividend growth and operational excellence. The company’s strategic investments ensure long-term value for shareholders.
- Interpublic Group of Cos. (IPG)
- Dividend Yield: 4.7%
- Dividend Growth Rate: 6.5%
Interpublic Group is a leading advertising and marketing services provider with a strong history of dividend growth. The company’s focus on innovation and client services drives its income potential.
- FMC Corp. (FMC)
- Dividend Yield: 4.8%
- Dividend Growth Rate: 7.0%
FMC Corporation is an agricultural sciences company with a global footprint. The company’s innovative products and growth strategy position it as a top dividend compounder in the market.
- HA Sustainable Infrastructure Capital (HASI)
- Dividend Yield: 6.2%
- Dividend Growth Rate: 7.0%
Hannon Armstrong is a climate change solutions provider with a diverse portfolio of sustainable infrastructure assets. The company’s focus on renewable energy projects ensures steady income growth for investors.
By investing in these high yield dividend compounders, you can create a reliable and growing income stream while benefiting from capital appreciation. Consider these stocks for your portfolio and watch your income compound over time.
Invest wisely and secure your financial future with these high yield dividend compounders.
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