Key Points
High-yield dividend stocks are great, but you know what's even better? High-yield dividends that can grow rapidly.
Prologis (NYSE: PLD) , MPLX (NYSE: MPLX) , and McCormick (NYSE: MKC) present investors with an unusual opportunity. They've been offering yields that are more than double the market average, plus they tend to raise their payouts rapidly. Here's why there's a good chance they'll generate a double-digit yield on cost for investors who buy now and hold over the long run.
1. Prologis
Prologis is the largest owner of logistics-related real estate on the planet and offers a 3.6% yield at recent prices. At the end of March, it owned or had investments in a stunning 1.3 billion square feet of logistics real estate.
Prologis has one of the best credit ratings of any real estate investment trust (REIT) , which enables it to borrow at interest rates its tenants can only dream of. For many businesses that own their logistics infrastructure, selling a building to Prologis and leasing it back is a great option for raising capital.
Amazon rents more space from Prologis than any other tenant. At just 5% of total rent, though, this REIT could maintain its dividend payout even if the everything store suddenly becomes the hardly anything store. A slew of businesses fueling the e-commerce transition enabled Prologis to raise its dividend payout by an impressive 11.7% annually over the past five years.
Sale-leaseback deals are already popular in the U.S., but this form of financing is still catching on in international markets. Currently, less than 30% of Prologis' net operating income is derived from international markets. Ex-U.S. operations playing catch-up could allow this REIT to continue its long history of big dividend payout raises.
2. MPLX
MPLX is a midstream energy business that pushes heaps of gas and crude oil through its growing pipeline operation. Until 2012, it was part of Marathon Petroleum , and the oil refining giant still buys a lot of the crude flowing through its pipes.
MPLX is an income-seeking investor's dream come true because the revenue its pipelines generate is relatively reliable. Extra visibility regarding demand through its Marathon Petroleum tie-up gives it an advantage that translates to rapid dividend raises.
At the moment, MPLX offers a huge 7.5% yield, and a new investor's yield on cost could quickly reach a double-digit percentage. The pipeline operator has raised its dividend payout by 8.1% annually over the past decade. With first-quarter net income rising 12% year over year, a big payout bump in the near term seems likely.
Before filling your retirement account portfolio with MPLX shares, it's important to realize this is a master limited partnership (MLP). Since MLPs are tax-advantaged entities, things can get complicated if your traditional IRA receives more than $1,000 annually from MLP investments.
3. McCormick
Investors who want to add some flavor to their portfolios should consider McCormick, the spice and flavorings giant. This company has paid a dividend every year since 1925, and it's raised its payout for 38 consecutive years.
If you look around your favorite grocery store, you'll find products from several businesses with decades-long dividend-raising track records. That said, I don't think any of them are raising their payouts as quickly as the spice king. McCormick's payout has risen by 8.4% annually over the past 10 years.
Rising commodity costs abroad have pressured earnings growth in recent quarters and pushed the stock down by about 31% from its peak in 2020. So far, 2025 hasn't been a great year for selling spices. In the first quarter, sales hardly budged year over year. Despite the temporary challenges, McCormick expects adjusted earnings to rise by 6% this year, at the midpoint of management's guided range.
At its depressed price, McCormick offers an unusually large 2.5% yield. This isn't a huge starting point, but steady movement in the right direction means patient shareholders could receive a double-digit yield on cost by the time they're ready to retire.
Before you buy stock in Prologis, consider this:
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