Nowadays, the average dividend yield of stocks in the S&P 500 index is only about 1.3%, even as the index enters a correction phase in early 2025. This reflects the still elevated levels of the market and the current market fluctuations. If you are a follow dividend yield investor, now is the time to look at those industry-leading companies, such as Toronto-Dominion Bank, Prologis, and NNN REIT. Why are these companies worth holding long-term? Let's take a look at the reasons.



First, let's talk about Toronto-Dominion Bank, commonly referred to as TD Bank. Despite facing some troubles, such as a money laundering incident in its U.S. operations which resulted in fines, the bank is working to improve internal controls in order to lift the asset cap restrictions in the U.S. market. The expansion of TD Bank was supposed to drive its growth, but now investors are worried and selling off shares. However, TD Bank's dividend yield is close to a historical high of 4.8%, while the average yield in the banking industry is around 2.6%. Considering TD's core business stability in Canada and its strong financial position, especially after it raised its dividend by 3% following the disclosure of U.S. issues, the management's confidence is evident. If you prefer stable dividend returns, TD Bank would be a good choice.

Looking at Prologis again, the company's stock price has fallen more than 20% from its 52-week high, and has dropped 40% compared to its peak in 2022. There are mainly two factors at play: first, after the pandemic, the market expected that real estate investment trusts would see rapid growth in rents, but when the growth rate slowed down, the stock price fell accordingly. Additionally, concerns about tariffs in 2025 have led investors to be wary of its global warehouse portfolio. Currently, Prologis's dividend yield is close to a ten-year high, at nearly 4%, making it one of the largest and most diversified companies in its industry. Even though the market is disturbed by tariff issues, the importance of global trade is likely to continue. If you believe this, Prologis is a high-quality, high-yield choice.

Finally, let's take a look at NNN REIT, a company focused on holding single-tenant retail properties in the United States, which has a dividend yield of 5.6%, a high level compared to the average REIT's 4% over the past decade. Although NNN REIT is not the largest player in the field, its 35 years of continuous dividend growth is unmatched. Current investor concerns about a potential economic recession affecting the retail sector are valid, but NNN REIT has weathered multiple economic downturns, maintaining an occupancy rate of over 96% even during severe economic crises. Given the ongoing stability and high returns of such a company, it may be worth considering adding it to your investment list.

In summary, even without pursuing excessively high yields, one can still achieve decent returns. High yields, like those of AGNC Investment reaching double digits, come with risks that cannot be ignored. It is better to choose stable, high-quality companies like TD Bank, Prologis, and NNN REIT to obtain long-term reliable dividend income. Remember, this information is for reference only, and any investment decisions should be made with caution.
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