A synthetic antiferromagnet serving as a reference layer for a magnetic tunnel junction is a laminate with a plurality of “x+1” magnetic sub-layers and “x” non-magnetic spacers arranged in an alternating fashion, with a magnetic sub-layer at the top and bottom of the laminated stack. Each spacer has a top and bottom surfaces that interface with adjoining magnetic sub-layers generating antiferromagnetic coupling between the adjoining sub-layers. Perpendicular magnetic anisotropy is induced in each magnetic sub-layer through an interface with a spacer. Thus the dipole field exerted on a free layer is substantially reduced compared with that produced by a conventional synthetic antiferromagnetic reference layer. Magnetic sub-layers are preferably Co while Ru, Rh, or Ir may serve as non-magnetic spacers.