2 Smart Dividend Stocks to Buy and Hold

As income investors, we are always on the lookout for investments that offer high dividends today and have the potential to continue generating substantial cash flow in the future. Diversification is key to building a robust income portfolio, and having a core of reliable dividend stocks is essential. Today, we present two smart dividend stocks that can serve as the foundation of your income portfolio: Uniti Group (UNIT) and Macerich (MAC).

Uniti Group (UNIT) - Yield: 15.63%

Uniti Group is a REIT that specializes in the ownership and operation of fiber networks and wireless towers. With a forward dividend yield of 15.63%, UNIT offers an attractive income opportunity for investors. The company's business model is built on predictable financials, with its Windstream lease making up most of its revenue and nearly 90% of EBITDA. This stability allows UNIT to maintain a consistent dividend payout.

UNIT's portfolio consists of approximately 135,000 route miles of fiber in the United States, primarily in the Southeast. The company generates revenue by leasing dark and lit fiber to wireless carriers and other enterprises. This business model has proven to be resilient, even in challenging market conditions.

Macerich (MAC) - Yield: 6.62%

Macerich is a REIT that focuses on the ownership, management, and development of regional shopping centers. With a forward dividend yield of 6.62%, MAC offers a solid income opportunity for investors. The company has successfully repositioned its portfolio to focus on Class A regional malls, which tend to perform better than lower-quality assets.

MAC's portfolio consists of 51 high-quality shopping centers, totaling approximately 87 million square feet of gross leasable area. The company's focus on high-quality assets and strong management team has enabled it to maintain a stable dividend payout, even in the face of changing market conditions.

Expected Growth Potential and Comparison to Other Income-Generating Investments

Both UNIT and MAC have the potential for significant growth, especially in a low-interest-rate environment. Their dividend payouts and yields compare favorably to other income-generating investments, such as bonds or other REITs. For instance, Uniti Group's forward dividend yield of 15.63% is significantly higher than the current 10-year Treasury yield of around 3.5% (as of 2025-02-22).



In conclusion, Uniti Group (UNIT) and Macerich (MAC) are two smart dividend stocks that offer attractive income opportunities and significant growth potential. Their high dividend yields and stable business models make them excellent choices for investors looking to build a diversified income portfolio. By including these REITs in your portfolio, you can benefit from their consistent dividend payouts and potential capital appreciation, while also enjoying the freedom of financial security.