My Top Dividend Stock To Buy In February
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2025 is off to an incredible start—and I don’t know about you, but my portfolio is back up to all-time highs with all the green we’ve been seeing this month.
To me, this feels bittersweet. On one hand, it’s great to be making money, but on the other hand, rising share prices mean that a lot of the dividend stock discounts we’ve had the good fortune of taking advantage of lately are starting to disappear.
With that said, there are still a few good-looking deals out there—and one of the standouts is Rexford Industrial Realty (REXR), which is my top dividend stock to buy in February (you can learn about some of my other top picks here).
Funny enough, this is the first time I’ve ever written about this company, and I can’t tell you why that is because, from what I can see, this is an absolute beast of a company. I’ve definitely been sleeping on this one.
In case you’re not familiar with Rexford, this REIT owns about 50 million square feet of industrial real estate in Southern California, which is the largest and highest-value industrial real estate market in the U.S. and the fourth-largest globally.
Source: Investor Presentation
What makes Rexford’s properties so valuable is that they’re considered mission-critical for their tenants. We’re talking about warehouses, distribution centers, logistics hubs, stuff like that—all essential facilities that businesses can’t operate without, especially in a region as densely populated and economically active as Southern California.
On top of that, land availability in this area is incredibly limited, which gives Rexford a certain competitive advantage. Their properties are always in high demand, and it’s not easy for competitors to replicate their portfolio.
Source: Investor Presentation
Like most other REITs, Rexford has been making a bit of a recovery lately, climbing 6.74% over the past month. While that doesn’t exactly scream “discount,” the stock is still down 19.63% over the past year, making it a good opportunity for long-term investors on the hunt for an above-average company at a below-average price.
Speaking of above-average, from a growth perspective, Rexford’s numbers look to be exactly that. As we can see from the charts on Snapstock, Rexford seems to be growing quite aggressively from top to bottom.
Source: Snapstock
All of this financial growth has, unsurprisingly, translated into strong dividend growth.
Rexford currently comes with a 4% dividend yield, which is nearly twice the company’s five-year average. With that, the cherry on top is the five-year dividend growth rate, sitting at just over 18%.
That combination—above-average yield and insane dividend growth—makes Rexford double-trouble in the dividend department.
Source: Snapstock
Now, speaking personally, I already have four REITs in my portfolio, so I’m not exactly in the market for another one right now. But if I ever decide to add more, Rexford is going to be at the top of my list.
In fact, I just added this company to my watchlist so I can keep a closer eye on it. For those of you with room in your portfolios for another REIT, I think this is a great one to consider.
Having said that, Rexford isn’t the only good buying opportunity on the market right now. It looks like there are quite a handful more, and I want to hear from you: Which discounted stocks do you have your eye on as we fly into February? Write to me here and let me know.
And if you want to learn about some other great buying opportunities right now, I've got a few more for you here.
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IN MY PORTFOLIO 📈
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ICYMI 🎥
All My Dividend Income In January | $91,600 PORTFOLIO
In January, I received 7 dividend payments from some heavy-hitting stocks and ETFs like VICI, MO, and OBDC.
In this video, we’ll go through each of those payments so you can see all of my dividend income received for the month, which was a great way to kick off 2025.
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📺 Free Money - One of the most common catchphrases you’ll hear in arguments against dividend investing is that “dividends aren’t free money.” In response, GenEx Dividend Investor shares some interesting data that might actually suggest otherwise.
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SINCE YOU ASKED 💬
"How many stocks are too many for a dividend growth portfolio? 20, 30, 40?"
- Joshua | YouTube
Ah, yes. The age-old question: How many stocks should you own?
I get this question all the time. It has puzzled investors for years, and for good reason—there’s no one-size-fits-all approach.
The right number of holdings varies from person to person, depending on their goals, portfolio size, and ability to actively manage their portfolio. With that said, there are a few key factors to keep in mind when deciding how many stocks you should have in your portfolio.
First of all, it’s important to understand the relationship between diversification and portfolio performance.
The more stocks you own, the more diversified your portfolio becomes, which means your returns are more likely to mirror the broader market. On the other hand, holding fewer stocks means your portfolio’s performance could deviate from the market—sometimes for better, sometimes for worse.
There’s a common belief that after a certain point—typically around 20 to 30 stocks I think—additional diversification doesn’t do any favors for your returns. In fact, it could potentially hurt them, as the benefits of diversification start to fall flat.
At that point, you might question whether it’s worth holding individual stocks at all or simply investing in ETFs.
Another important factor to consider is your ability to stay on top of your investments. How much time can you dedicate to the companies in your portfolio?
Owning individual companies means keeping track of quarterly and annual earnings, company announcements, and other relevant happenings. This can be pretty time-consuming (especially during earnings season) and can be difficult to stay on top of if investing isn’t your full-time job.
For me, somewhere around 20 companies feel like the sweet spot. It’s the maximum number of holdings I can realistically manage without feeling like I have too many to keep track of.
However, every investor is different. Some people can easily manage 30 or even 40 stocks, while others prefer to concentrate their portfolio with fewer holdings. I know a few investors who take a less-is-more approach and own less than 10 stocks at any given time.
Closing the book on all of this, the number of stocks you should own is the number that allows you to balance diversification, manageability, and peace of mind. In my experience, you'll naturally settle into your diversification “sweet spot” over time.
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