3 dividend stocks I’d want in my portfolio

It’s quite hard these days to find shares that offer a solid, growing dividend. I focus on dividends that are growing because if they’re not growing they’re more likely to go backwards. Telstra Corporation Ltd (ASX: TLS) and G8 Education Ltd (ASX: GEM) have both decreased their dividends in recent times.

These are three shares I think fit the bill:

Paragon Care Ltd (ASX: PGC)

Paragon has progressively acquired businesses in the healthcare sector to provide medical equipment, devices and consumables for the Australia and New Zealand healthcare market. Paragon now offers items for acute, aged, primary, community and hospital care.

In-fact, just this week Paragon announced that it would be acquiring a surgical equipment business.

Paragon has increased its dividend each year for the past five years and currently has a grossed-up dividend yield of 5.79%.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is one of the newer listed investment companies (LICs) launched by Wilson Asset Management. It focuses on the larger businesses on the ASX, which means its portfolio might benefit from less volatility and receive bigger dividends compared to the smaller end of the Australian market.

The LIC is steadily increasing its dividend whilst growing its retained earnings. It’s currently trading with a grossed-up dividend yield of 6.18% if we assume another 2.5 cent dividend in six months.

Rural Funds Group (ASX: RFF)

Rural Funds Group is my favourite real estate investment trust (REIT). It owns farmland properties and leases them to high-quality tenants like Treasury Wine Estates Ltd (ASX: TWE) and Select Harvests Limited (ASX: SHV).

I think Rural Funds is a good long-term income idea because it has rental increase indexation built into all of its contracts and management have an aim of increasing the distribution by 4% each year.

Rural Funds has increased its distribution every year since it started and currently has a yield of 4.75%.

Foolish takeaway

I believe all three of these shares will make good dividend choices over the next decade compared to the big four banks. At the current prices I’d be inclined to go for Paragon, but that’s because I’m also looking for growth. Rural Funds is the one most likely to be able to deliver on steady income growth in the long-term.

This is another top dividend stock I’d be happy to invest in today, as I already own shares in it.

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Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra Limited. The Motley Fool Australia has recommended G8 Education Limited and Paragon Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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