I am a beautiful active investor. Cash routinely flows through passive income sources and recurring transfers to my investment accounts. I like to put most of my money aside right away Unpleasant work to generate more passive income.
High Quality, high yield dividend stocks are my go-to investment. I routinely add to my favorite positions. This month I plan to continue buying shares of Real estate income (NYSE: O), Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP)And Enbridge (NYSE: ENB). This is why I can not seem to get tired of these top income stocks.
The name says it all all
Realty Income has a phenomenal record of paying dividends. The diversified REIT has 647 consecutive monthly dividendsIt has increased its payout 126 times since going public in 1994, including the past 107 consecutive quarters, during which its payout has increased at a compound annual rate of 4.3%.
I fully expect the payout to rise steadily, with a 6% yield well above the S&P 500‘s average of 1.3%, to continue. Realty Income’s internal growth drivers — rising rents and using retained cash flows after paying dividends to fund new investments — should boost adjusted funds from operations (FFO) by approximately 2% per share every yearThis provides a solid basis for a steadily increasing dividend.
Meanwhile, the company estimates it can add about 0.5% to its FFO per share growth rate for every $1 billion in externally financed acquisitions it makes. Those acquisitions are financed by selling stock and issuing new debt. Realty Income conservatively estimates it can finance $4 billion to $6 billion worth of acquisitions externally every year. When added to the internal growth drivers, this should push the FFO per share growth rate to around 4% to 5% per year, in line with the historical growth rate. With trillions of dollars in commercial real estate assets in the US and Europe, Realty Income should have plenty of new investment opportunities.
The strong growth should Get on
Brookfield Infrastructure has done a great job of increasing its dividend. The global infrastructure operator has grown its payout at a compound annual rate of 9% since 2009.
It should have plenty of fuel to grow its payout going forward. Brookfield expects a trio of organic drivers — inflation-indexed rate increases, volume growth as the global economy expands and expansion projects funded with retained cash flow after dividends — to boost its FFO per share by 6% to 9% annually. The company has a large backlog of expansion projects underway, including several data center developments and two new semiconductor fabrication facilities that it is helping to finance.
In addition to organic growth, Brookfield has an excellent track record of making accretive acquisitions. The company recently agreed to buy an additional 10% stake in its Brazilian integrated rail and logistics provider, and it is working on acquiring a portfolio of telecom towers in India. It is financing these deals by recycling capital. Brookfield believes acquisitions will drive FFO growth into the double digits, easily supporting its plan to increase its dividend, which yields about 5%, by 5% to 9% per year.
Enough fuel to keep growing
Enbridge has been paying dividends to its investors for nearly seven decades. The Canadian pipeline and utility giant has increased its payout every year the last 29.
The company should have enough fuel to keep increasing its dividend, which currently yields a monstrous 7.5%, for years to come. It is in the process of closing a one-time acquisition of three high-quality gas companies in the United States. The deal will immediately increase earnings, improve diversification and income stability and contribute to the growth profile.
In addition, the company has a robust organic growth backlog. It has billions of dollars of commercially secured projects under construction that should come online through 2028. These projects should grow cash flow per share by 3% per year through 2026 and at a pace of about 5% per year thereafter. That visible profit growthtogether with his first-class financial profilepositions Enbridge to continue to increase the dividend every year.
High yielding stocks
Realty Income, Brookfield Infrastructure, and Enbridge are my ideal income stocks. They pay dividends that are well above average, and those payouts should continue to grow steadily in the future. Those factors are driving My decision to continue buying these top income stocks in July was a bull’s eye.
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Matt DiLallo has positions in Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Enbridge, and Realty Income. The Motley Fool has positions in and recommends Enbridge and Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
3 Best Dividend Stocks I Want to Buy Massively This July was originally published by The Motley Fool
