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.

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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 (opens in new tab).

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.

Data is as of June 8, 2018. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price.

Brian Bollinger
Contributing Writer, Kiplinger.com

Brian Bollinger is President of Simply Safe Dividends, a company that provides online tools and research designed to help investors generate safe retirement income from dividend stocks without the high fees associated with many other financial products.