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3 dividend stocks I’d buy for my ISA and hold for 10 years

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Tritax Big Box is an income share I’ve long had an investing crush on. Demand for its gigantic warehousing and distribution hubs is already robust and should keep growing in the decades to come as the e-commerce boom continues.

The same case can be made for Tritax’s smaller rival Urban Logistics REIT (LSE: SHED) too. The AIM-quoted company enjoyed record take-up of its space in the 12 months to March, beating the prior all-time high printed just a year earlier. And rental income almost doubled in the period, reflecting that aforementioned demand surge as well as a chronic shortage of so-called big box facilities in the UK.

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Annual dividends at Urban Logistics swelled 12% last year, and more meaty growth is anticipated for fiscal 2020, meaning a chunky 5.8% yield. And it’s not hard to foresee chubby payout hikes long into the future as profits likely go from strength to strength.

Prime target

Target Healthcare REIT (LSE: THRL) is another big-yielding property share I’d happily stash in my ISA today and hold there for years to come.

This business provides care homes the length and breadth of the country, and because of steady growth in the UK’s elderly population, I’m tipping earnings here to keep flourishing as well. Predictions from the Office for National Statistics suggests the number of citizens aged 85 years or over is set to balloon to 3.6m by 2019, up from 1.5m five years ago, certainly bolsters my confidence.

What’s more, Target has both the appetite and financial strength to remain active on the acquisition front to capitalise on this vast structural opportunity. In the last few months alone it’s shelled out close to £15m on a couple of care homes in Nottingham and Merseyside.

Its very bright growth outlook means City brokers predict more dividend hikes at Target in the near-term, leaving another mighty 5.8% yield for the current year (to June 2020). Buy it today for handsome income flows for years to come, I say.

Be bowled over

The renaissance of ten-pin bowling in the UK makes Ten  Entertainment Group (LSE: TEG) another dividend great to buy today.

It doesn’t matter that Britons’ spending power is coming under sustained pressure. A night out at the bowling alley is a relatively cheap, fun and unique experience, and this is why people are still flocking to their nearest venue in record numbers. This was evident in Ten Entertainment’s interims this month in which it advised of a 7.4% uplift in like-for-like sales in the period to June.

And just as we are seeing at Target, Ten Entertainment is putting its robust balance sheet at work to build future growth, the small-cap adding new centres in Southport and Falkirk to its estate portfolio in recent months.

Right now, the bowling behemoth carries a large 5% dividend yield for 2019 and a dirt-cheap corresponding P/E ratio of 11.7 times. I consider it to be a white-hot buy for ISA investors at the current share price.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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