Solid Dividend Stocks to Buy for a Housing Recovery

For the sixth straight month, more than 70% of all American metropolitan areas are showing growth in their housing markets. That's according to a study released on Monday by the National Association of Homebuilders, called the Improving Market Index. Despite this impressive growth, home prices nationwide are still about 25% below their pre-recession highs, showing just how far a housing recovery might have to run. Dividend investors can have a hard time taking advantage of this comeback story, however.

The major homebuilders like DR Horton (NYSE: DHI ) and Lennar (NYSE: LEN ) cut their dividends in the aftermath of the subprime mortgage meltdown, and those few homebuilders that offer a dividend at all yield less than half a percent. Instead, let's look at two companies that are not only poised to profit handsomely from the housing recovery, but are also renowned for their legendary, rock-solid dividends: The dominant heavy equipment supplier is none other than top-tier dividend stock Caterpillar (NYSE: CAT). Another winner in a recovering housing market is Waste Management (NYSE: WM).

Source: Motley Fool

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