A magnetic element is disclosed wherein a composite seed layer such as TaN/Mg enhances perpendicular magnetic anisotropy (PMA) in an overlying magnetic layer that may be a reference layer, free layer, or dipole layer. The first seed layer is selected from one or more of Ta, Zr, Nb, TaN, ZrN, NbN, and Ru. The second seed layer is selected from one or more of Mg, Sr, Ti, Al, V, Hf, B, and Si. A growth promoting layer made of NiCr or an alloy thereof is inserted between the seed layer and magnetic layer. In some embodiments, a first composite seed layer/NiCr stack is formed below the reference layer, and a second composite seed layer/NiCr stack is formed between the free layer and a dipole layer. The magnetic element has thermal stability to at least 400° C.