Kiplinger

The “Sweet Spot”: 15 Mid-Cap Dividend Stocks to Buy

Mid-cap stocks are an overlooked and underappreciated area of the market for long-term dividend growth investors.

These companies, generally defined as stocks with market caps between $2 billion and $10 billion, have delivered tremendous performance in recent decades. According to data provided by the Schwartz Investment Counsel, a $1,000 investment made in the S&P MidCap 400 Index on March 1, 1984, would have been worth $74,159 at the end of the first quarter of 2018. For comparison's sake, the same $1,000 investment made in large caps and small caps, respectively, would be worth only $38,155 and $31,567.

Mid-cap stocks have delivered the highest risk-adjusted returns over the past 20 years relative to small caps and large caps, according to Matthew J. Bartolini, CFA, Head of SPDR Americas Research at State Street Global Advisors.

Mid-caps generally can grow faster than their larger peers (or be acquired more easily) because of their nimbler operations. However, they also tend to enjoy greater diversification, better access to capital, and more proven management teams compared to small-cap companies. Some mid-caps also offer generous payouts, landing on research firm Simply Safe Dividends' list of the best high-dividend stocks here.

Here are 15 of the best mid-cap dividend stocks right now. Each company yields more than 2% and has a long history of paying uninterrupted dividends.

National Health Investors

Getty Images

Market value: $3.1 billion

Dividend yield: 5.2%

National Health Investors (NHI, $73.74) is a play on America's aging society. Specifically, the real estate investment trust (REIT) owns a diverse portfolio of skilled nursing and senior housing properties. The firm's 225 properties are run by 32 operating partners located across 33 states.

The firm's leases usually have an initial term lasting 10 to 15 years and hold the tenant responsible for taxes, maintenance and utilities - often referred to as a "triple net" lease. The result is a high-margin stream of cash flow for National Health Investors,

You’re reading a preview, subscribe to read more.

More from Kiplinger

Kiplinger3 min read
I’ve Inherited a Lot of Money. Now What?
It’s no surprise that many people who inherit millions of dollars are uncertain about what to do with their newfound wealth. The possibilities of becoming a multimillionaire overnight can be overwhelming, especially during a period when most are grie
Kiplinger5 min readRobotics
Retirees: Your Next Companion May Be a Robot
Elliq, a foot-hight robot that looks like an oval lampshade on a small base, greets Monica Perez first thing in the morning, asks her how she feels, and reminds her about taking medications and any upcoming appointments.  “I have good-quality friends
Kiplinger2 min read
Tax-Savvy Charitable Giving With QCDs Can Benefit Both Giver and Receiver
Plenty of retirees like to give back to their communities through charitable donations, but questions often arise over the best way to do that. What approach is efficient, provides the tax benefits you’re after, and also is advantageous for the chari

Related Books & Audiobooks