Dividend investing is a popular strategy, especially in the long term. It provides consistent returns whether a security goes up or drops in value. For individuals setting up a retirement account, it’s vital to consider many stocks that provide dividend payouts. It is a way of compounding growth and stabilizing an investment portfolio during a bear market.

Furthermore, many dividend stocks tend to gradually increase their dividend yield over time, especially during times of improving profitability. Also, this plays a major impact on a long-term portfolio.

Specifically, three dividend-paying stocks with strong buy ratings have experienced impressive share price appreciation over the past year. So, these stocks are all solid additions to an investment portfolio.

NewLake Capital Partners (NLCP)

NewLake Capital Partners (OTC:NLCP) is an industrial REIT that provides real estate locations for the regulated cannabis industry primarily through triple net leases. The firm owns several cultivation facilities and dispensaries.

Moreover, NLCP offers investors an annual dividend yield of 8.21%. Its most recent quarterly distribution was 41 cents per share on March 26. Over this past year, its share price has increased by 59% due to sustained earnings growth and a loosening of restrictions surrounding cannabis legalization.

On May 9, NLCP reported earnings for the first quarter of 2024, stating that total revenue increased by 10% and net income increased by 17% year-over-year (YOY). In May, NewLake Capital Partners purchased a cultivation facility in Connecticut for approximately $4 million. Back in April, the U.S. Drug Enforcement Administration (DEA) announced that it would reclassify marijuana from a Schedule I drug to a Schedule III, which is a drastic change and could cause a major shift in the industry.

Hence, NewLake Capital is a strong buy-divided stock that provides investors with solid share price appreciation and beneficial reclassification. NLCP is an important stock to keep an eye on.

Costamare (CMRE)

Costamare (NYSE:CMRE) is a marine transportation company that operates a fleet of just over 100 vessels, including containerships and dry bulk ships.

The company offers investors a dividend yield of approximately 3.03% on an annual basis. Its most recent quarterly distribution was for 12 cents per share on April 17.

On May 10, CMRE reported earnings for the first quarter of 2024, stating that total revenue increased by 89% and adjusted net income rose by 62%. It has a large liquidity position of $1,060 million. And, its new financial leasing program has now funded approximately 24 shipping assets totaling $258 million. Over this past year, CMRE’s share price has increased by 66%, providing investors with a healthy rate of return.

Additionally, Costamare beat analysts’ predictions for its first-quarter earnings, especially in terms of revenue growth. Investors have been excited about this stock due to its remarkable liquidity position and leasing program. Thus, CMRE is a strong buy dividend stock on the right track.

Golub Capital (GBDC)

Golub Capital (NASDAQ:GBDC) is an asset management company that provides business development solutions and engages in equity interest development in multiple industries, including health care, insurance, hospitality, IT and retail.

Over this past year, its share price has increased by 18%, partly due to its cost-cutting measures and an overall increase in originations. On May 6, GBDC reported earnings for the first quarter of 2024, stating that total revenue increased by 20% YOY. A net loss of $12 million was reported for Q1 of 2023; in Q1 of 2024, it shifted to a net income of $7 million.GBDC provides investors with a dividend yield of 9.91%, with its latest quarter distribution being for thirty-nine cents per share on April 30.

Golub Capital is a strong buy dividend stock due to its solid YOY revenue growth and impressive dividend yield. Therefore, this makes it a perfect candidate for income generation.

As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.