Dividend gems for less than 200 dollars: TD Bank and Rexford Industrial in focus

The art of dividend investing opens up two promising approaches: securing immediate returns or relying on long-term income growth. Both strategies are significant and complement each other excellently. The current market allows investors to acquire attractive stocks like the Toronto-Dominion Bank (TD Bank) and Rexford Industrial for under $200 – both promising dividend stocks. TD Bank impresses with a dividend yield of 4.7%, which is almost unprecedentedly high in its corporate history. In comparison, the average dividend yield of banks, measured by the SPDR S&P Bank ETF, is only 2.5%. The Canadian bank, which has been paying dividends without interruption since 1857, did not cut its payouts during tough times like the Great Depression and the financial crisis – a sign of remarkable reliability. However, currently, a scandal over inadequate money laundering controls in the US market is weighing on the stock. The consequences are evident: a planned merger was canceled, and the bank must set aside about $3 billion for expected fines and legal costs. Analysts assume that growth, particularly in the US market, will be temporarily slowed. Nevertheless, TD Bank's foundation in Canada remains strong, and the investment-grade balance sheet argues against a dividend cut. Rexford Industrial, on the other hand, a REIT focusing on industrial properties in Southern California, currently offers a dividend yield of about 3.5%. This is below the REIT average of 3.7% but is high in the company’s historical context. The impressive average annual dividend growth rate of 13.5% over the last decade stands out. Rexford benefits from a limited supply due to strict construction regulations in its core region, considered a significant gateway for trade between Asia and the USA. The company's successful approach of continuously upgrading properties allows for higher rental prices – a crucial factor for further growth. Although Rexford currently holds only 2.7% of the regional market, it offers ample potential for expansion. For investors seeking stable dividend yields today and growth opportunities for tomorrow, TD Bank and Rexford can represent an ideal combination. Both stocks are trading well below $200 and offer diversity in the dividend portfolio.