I'd Double My Position in These 3 Dividend Stocks Without Thinking Twice

1 hour ago 2

Matt DiLallo, The Motley Fool

Sun, March 29, 2026 astatine 2:35 PM CDT 4 min read

I ain tons of stocks, astir of which wage dividends. I absorption connected dividends stocks due to the fact that I similar earning passive income. They've besides historically delivered overmuch higher returns compared to non-dividend payers.

Three of my favourite dividend stocks are Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), Enterprise Products Partners (NYSE: EPD), and Realty Income (NYSE: O). I already person sizable positions successful each three. However, I wouldn't deliberation doubly astir doubling my positions. Here's why.

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Brookfield Infrastructure has everything I look for successful a halfway dividend holding. It generates precise durable currency flows to enactment its high-yielding payout (currently 4.8%). About 85% of its net travel from long-term, fixed-rate contracts oregon government-regulated gross frameworks, which either indexes its gross to ostentation oregon support it from inflation's impact.

The diversified planetary infrastructure relation besides has a beardown fiscal profile. It has a blimpish dividend payout ratio (60% to 70% of its unchangeable currency flows) and a strong, investment-grade equilibrium sheet. That gives it important fiscal flexibility to proceed increasing its operations and its dividend.

Brookfield Infrastructure besides has coagulated maturation prospects. It expects to turn its currency travel per stock astatine a much than 10% annual rate going forward, driven by inflation-linked complaint increases, enlargement projects, and acquisitions. That should enactment dividend maturation of 5% to 9% per year. Brookfield has accrued its payout for 16 consecutive years, increasing it astatine a 9% compound yearly rate.

Enterprise Products Partners is an exceptional income holding. The master constricted concern (MLP) -- it sends investors a Schedule K-1 Federal taxation signifier -- presently yields 5.6%. The vigor midstream institution has accrued its organisation for 27 consecutive years.

The MLP is in a beardown position to proceed increasing its high-yielding payout. It has a fortress fiscal profile. Enterprise Products Partners generates precise unchangeable currency flow, chiefly backed by long-term, fixed-rate contracts oregon government-regulated complaint structures. The institution generated capable currency to screen its organisation by 1.7 times past year, enabling it to clasp tons of currency to reinvest successful the partnership. It besides has the strongest equilibrium expanse successful the vigor midstream sector.

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