Dividend stocks are my favorite investments. They produce passive income that I can reinvest. Furthermore, dividend stocks historically produce higher total returns than non-payers, with much lower volatility.
There are a lot of great dividend stocks out there. Infrastructure in Brookfield (NYSE: BIBC)(NYSE: BIP) and Enbridge (NYSE: ENP) They are two of the best. They pay a high-yielding dividend that rises steadily. With more growth aheadthese are excellent dividend stocks to buy in December.
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Brookfield Infrastructure increased its dividend every year Since its establishment 15 years ago. The global infrastructure operator has increased its payouts at a CAGR of 9% over this time frame. It currently offers investors an earnings yield of around 4%, And he Three times higher than Standard & Poor’s 500 (SNPINDEX: ^GSPC) (yield 1.2%).
The company pays a well-supported dividend. It is born very Stable cash flow, with 90% contracted or regulated (70% having no exposure to volume or price) and 85% either linked to or protected from inflation. Brookfield expects so Dividend distribution ratio About 67% of its funds will be from operations (FFO) this year, which puts it within the target range of 60% to 70%. The company also has a strong investment-grade balance sheet with plenty of liquidity.
Brookfield’s earnings are only part of the equation. The company also expects to continue growing FFO at an annual rate of more than 10%. It has several organic growth drivers, including inflation-linked rate increases, volume growth as the global economy expands, and development projects. It currently has a backlog of $8 billion of projects (data centers, Semiconductors manufacturing facilities, utility communications, and midstream expansions) and more than $4 billion in additional projects in development.
Furthermore, the Company expects to continue completing accretive M&A transactions. Its current deal pipeline is as large as it has been in two years and continues to grow.
These drivers should enable Brookfield to increase its dividend by 5% to 9%. every year.
Enbridge has recently reached a milestone. The Canadian pipeline and utility operator increased its dividend by 30% straight Years. It currently offers a top dividend yield of over 6%.
The company has one of the least risky business models in the energy sector. About 98% of its profits come from stable service costs or contracted assets, while 80% of it has inflation protections. This enables the company to achieve very predictable profits. It is on pace to meet its 19th annual financial guidance respectively.
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