The best dividend stocks share one thing in common. They regularly increase their payments. This is clear from digging into the data. Data from the Ned Davis Research and Hartford Funds shows that in the past 50 years dividend growers have significantly outperformed companies that have not changed to dividend payments (average gross revenue of 10.2% compared to 6.7%).
Brookfield Infrastructure(NYSE: BIPC)(NYSE: BIP), nextera energy(NYSE: No)and oneok(NYSE: OKE) There is a solid record of increasing dividends. They also have excellent growth prospects. addition in Their higher yields, and they stand out as the best dividend stocks to buy this month.
Brookfield Infrastructure recently increased its dividend by 6%. “This indicates a 16th consecutive year of distribution growth within or above target range (5%-9% per year)” This has resulted in a dividend yield for global infrastructure operators above 4%. S&P 500‘s 1.2% yield.
The company has several growth drivers, including inflation-related rate rise, volume growth as the global economy expands, capital projects and acquisitions. Brookfield participated this year with a record backlog of organic capital projects and a critical development pipeline. Large percentage The project is related to expanding the data infrastructure platform. It funds two US people semiconductor Large-scale pipelines for manufacturing facilities and data center development all over the world.
“When the project comes online, they hope to contribute meaningfully to revenue over the next three years and drive overall growth,” Pollock wrote in a fourth quarter letter. Brookfield currently has the deepest pipeline of early-stage acquisition opportunities over the years.
Company growth catalysts are arranged to be realized with the purpose of growth Funds from operation (FFO) Annual fees of 10% or more. With a strong balance sheet and conservative dividend payment rate at 67% of FFO (within the 60% to 70% target range), Brookfield should have no problem continuing to increase its dividends.
Nextera Energy has a long history of achieving above-average dividend growth. Utilities Over the past 20 years, we have increased our payments at a combined annual rate of approximately 10%. This is much faster than its peers driven by robust revenue growth rates (8.9% combined annual average adjusted revenue growth over the past 20 years compared to 3.8% of its peers over the past 20 years rate).
The major factors driving the company’s above average growth are Focus on the building Renewable Energy project. It is the world leader in renewable energy and storage.
Nextera Energy currently has a large, growing backlog of renewable energy projects. Operating a renewable energy portfolio of approximately 75 gigawatts by 2027 is well underway. Fourth Quarter Revenue Telephone Conference. The company’s renewable energy-driven growth have Get on track and increase earnings per share at or near the top of the 6% to 8% growth target range through 2027. 3% – Yield A yearly dividend of approximately 10% by at least 2026.
Oneok has brought dividend stability and growth for over a quarter century. on the other hand Pipeline stock Due to not increasing payments every year, dividend payments have almost doubled over the past decade. company Currently targeting 3% to 4% per year to increase dividends that generate 4.2%.
The acquisition is ONEOK’s major short-term growth driver. The company closed its transformative $18.8 billion acquisition of Magellan mid-class partners in 2023. It is expected to add an average of 20% or more to free cash flow per share through 2027. year. Oneok followed by spending $5.9 billion on Accretive deals last year to buy Medallion Midstream and buying 43% interest from Enlink. He then ended the purchase of the remaining shares of Enlink this year on stock exchange trading.
Oneok also has an increasing backlog of organic expansion projects. Recently, we formed a joint venture with mplx Build pipelines associated with liquefied oil and gas export terminals along the Gulf Coast. The company is expected to invest $1 billion in these projects and participate in commercial services in 2028. We are also expanding our Elk Creek NGL Pipeline to expand our sophisticated expansion. product Rebuilding capacity for the Denver area and NGL splitters in Oklahoma. These projects will come online and will increase their ability to supply incremental revenue and cash flow over the next few years and increase dividends.
Brookfield Infrastructure, Nextera Energy, and Oneok have done an excellent job of increasing dividends over the years. They hope to increase high revenue payments in the future. With its dividend growth, they stand out as some of the best dividend stocks to buy this month. Because they can give them fuel to generate above average total revenue over the long term.
Consider this before purchasing stock at Nextera Energy.
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Matt Diallo He has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, and Nextera Energy. Motley Fool has a job at Nextera Energy. Motley Fool recommends Brookfield Infrastructure Partners and Oneok. To Motley’s fool Disclosure Policy.
