Headline: 3 Best Dividend Stocks I Want to Buy Massively This JulyHeadline: 3 Best Dividend Stocks I Want to Buy Massively This July Body: As an active investor seeking passive income, I allocate a significant portion of my earnings towards high-quality stocks with a strong dividend yield. This month, I plan to further invest in three top income stocks that have consistently exceeded my expectations: Realty Income (O), Brookfield Infrastructure (BIPC/BIP), and Enbridge (ENB). Realty Income: A Dividend Stalwart Realty Income has an impressive track record of consecutive monthly dividends and payout increases. The company’s diversified real estate portfolio, rising rents, and retained cash flows support its ability to grow its dividend at a steady pace. With a yield well above the market average and an expected 2% annual growth in adjusted funds from operations (FFO), Realty Income remains an attractive dividend stock. Brookfield Infrastructure: Fueling Growth Brookfield Infrastructure has grown its dividend at a remarkable 9% compound annual rate since 2009. Its global infrastructure assets provide stable cash flow and organic growth drivers, such as inflation-indexed rate increases and expansion projects. The company’s strong track record of acquisitions further enhances its growth prospects. Enbridge: A Reliable Dividend Payer Enbridge has been paying dividends for nearly seven decades, with a 29-year streak of annual payout increases. The company’s one-time purchase of high-quality gas companies in the United States will boost its earnings and diversification. Enbridge also has a robust organic growth backlog, which is expected to contribute to cash flow per share growth in the years ahead. Its 7.5% dividend yield is one of the highest in the industry. High Yielding Stocks: My Investment Strategy Realty Income, Brookfield Infrastructure, and Enbridge meet my criteria for ideal income stocks. Their dividends are well above average and are likely to continue growing steadily in the future. These factors drive my decision to continue buying these top income stocks in July. Disclaimer from The Motley Fool: Before investing in Enbridge, consider the following: The Motley Fool’s analysts do not recommend Enbridge as a top stock for investment. Consider other high-growth stocks that have the potential for significant returns.
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, stocks with a high dividend yield are my go-to investment. I routinely add to my favorite positions. This month I plan to continue buying shares of Income from real estate (NYSE: O), Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP)And Enbridge (NYSE: ENB). This is why I can not seem to getting 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 dividendsSince going public in 1994, the company has increased its payout 126 times, including the past 107 consecutive quarters, during which the payout has increased at a compound annual rate of 4.3%.
I 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 of acquisitions externally every year. When added to the internal growth drivers, this should drive the FFO per share growth rate to around 4% to 5% per year, in line with the historical growth rate. With trillions of dollars of commercial real estate assets in the US and Europe, Realty Income should have plenty of new investment opportunities.
The strong growth should Continue
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 preserved 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.
The story continues
In addition to organic growth, Brookfield has a strong 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 capitalBrookfield believes acquisitions will drive FFO growth to double digits, which will support its plan to increase its dividend, which yields around 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 purchase of three high-quality gas companies in the United States. The deal will immediately increase earnings, enhance 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 turned out to be 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
