Dividend stocks have proven to be wealth creators. Over the past 50 years, these companies have outperformed non-payers by more than 2 to 1. A big driver of this is their steady (and often growing) income stream, which provides investors with a strong underlying return year after year.

Characteristics of one freedom (NYSE: AOLB), Trust Financial (NYSE: TFC)And Apartment communities in Central America (NYSE: EARTH) They have great records of paying dividends. This is one of the factors that makes them stand out to the few Fool.com contributors. This is why they believe that investors will not regret purchasing these premium products Dividend stocks now.

The founding family wants to keep this real estate investment trust profitable for years

Tyler Crowe (One Liberty Properties): There are many shortcuts for investors to evaluate the viability of a dividend for years into the future. One of the most underrated is when founding families own ownership of a large company. When a household's income comes from one-share dividends, you can be reasonably sure that the company will be managed to maintain those dividends.

This has been the case with One Liberty Properties for many years. The Gould family founded the REIT and still owns 27.4% of the shares outstanding. Their large stake in the REIT is likely why the company has paid consecutive dividends for over 30 years.

The long dividend history is somewhat impressive, but what underscores the company's commitment to its dividend is that management has maintained its payout even though it has undergone a complete portfolio turnaround. Over the past decade, the company has transitioned from a diversified real estate investment trust with a variety of properties (fitness centers, furniture stores, offices, restaurants) to a collection of mostly industrial warehouses and distribution facilities. In 2016, industry accounted for about 22% of annual rent. Today, industrial real estate makes up 67%.

This portfolio shift has been difficult. Funds from operations stagnated, and it had to take on more debt than most investors were comfortable with. Despite these headwinds, it has paid its dividend like clockwork.

With a transformed portfolio and improving financials, it wouldn't be surprising to see One Liberty Properties start to grow its dividend. At the current yield of 7.5%, this could be a very attractive stock.

Take it to the bank

Jason Hall (Financial Trust): Admittedly, banks can be both very safe and risky investments. They are profiteers (they have a lot of cash but lend most of it) and are highly connected to the overall economy. Furthermore, sentiment can cause stock prices to fall painfully when there are concerns about the economy. This can also create an opportunity for investors as well, especially if you focus on the strongest, best-capitalized banks that can weather economic storms and continue paying shareholders.

The story continues

Truist Financial is on that short list for me. It has consistently generated moderate to high returns on its common tangible equity, maintained its expense ratio (the amount of its revenue that must cover operations) in the high 50% to 60% range, and maintained more than enough liquidity to cover its costs. Meeting the needs of depositors and securing their balance sheet.

Although its earnings have faced some pressure due to rising interest rates slowing lending and a severe weakness in the supply of homes affecting the mortgage market, it still generates strong earnings that far exceed its bottom line. Last quarter, it earned $0.81 per share, making its payout ratio 64% for the quarter.

With a yield above 5% and shares trading at just over 9 times earnings, investors looking to buy and hold for many years will not regret investing in Truist Financial now.

This passive income machine is for sale

DiLallo died (Apartment in the middle of America Communities): Apartment rit Mid-America Apartment Communities, or MAA, has done a great job of generating stable and growing profits. The company paid its 121st consecutive quarterly dividend last month. It has increased its payouts for 14 straight years, including by 5% late last year. The REIT currently yields more than 4%, about three times as much Standard & Poor's 500The dividend yield is approximately 1.3%.

One big factor causing this high return is the REIT's stock price falling 40% from its peak in 2022 due to rising interest rates. They weighedon The value of real estate has increased and made it more expensive for the REIT to borrow money to finance new developments and acquisitions. MAA also faced some near-term headwinds to rental growth due to increased new supply on lots From her Markets.

However, these headwinds should fade over the next few quarters. The Federal Reserve has indicated that it plans to start cutting interest rates as inflation moderates, which many expect will happen later this year. Additionally, MAA believes new supply deliveries will decline later this year and into 2025 as the market absorbs all new units currently coming online. This catalyst should “foster a strong and rapid recovery in rental performance,” according to CEO Eric Bolton.

MAA also has a strong balance sheet, making it able to capitalize on emerging new growth opportunities. The real estate investment trust recently started construction of a new project and purchased land to build another project. These projects are among four to six projects expected to begin over the next two years, in addition to the five projects already under construction. Combine that with rental growth and falling rates, and MAA could result Strong total Returns in the coming years. With abundant upside catalysts and rising profits, you won't regret buying MAA here.

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Jason Hall He has positions at Truist Financial. DiLallo died He has positions at Mid-America Apartment Communities and Truist Financial. Tyler Crowe He has positions in apartment communities in Mid-America. The Motley Fool has positions in and recommends Mid-America Apartment Communities and Truist Financial. The Motley Fool has Disclosure policy.

3 Great Dividend Stocks You Won't Regret Buying Now Originally published by The Motley Fool