This income name builds much of its own inventory instead of buying up existing homes, and that habit is now paying off in a 14% three-year dividend growth rate, one of the strongest in its peer group. That kind of pace matters to investors who care less about today’s yield and more about where the payout is headed over the next few years.
The company operates in the single-family rental space, renting out standalone houses rather than apartment units, and it has leaned on an in-house homebuilding arm to keep growing its portfolio on its own terms. Demand for these homes has stayed firm, with occupancy running above 96% and rents on new and renewed leases both moving higher. New construction is even getting leased before it’s finished, a sign that supply isn’t outpacing demand. The main pressure point is that rent growth from a year ago was unusually strong, so the comparisons ahead get tougher, and a handful of regional markets are running cooler than the rest.
We increased our position in this name within the Dividend Growth Stocks Portfolio, reflecting confidence that its combination of self-funded growth and a lengthening dividend track record fits the portfolio’s focus on compounding income over time.
