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Brookfield Infrastructure has set its sights on increasing its dividend each year by about 5% to 9%.
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Exxon is gearing up for substantial earnings and cash flow growth by 2030, which would help their ongoing dividend increases.
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Prologis boasts various growth drivers that support its plans for dividend hikes.
Currently, the dividend yield of the S&P 500 is hovering around 1.2%, which is quite low historically. However, this doesn’t imply a lack of attractive income opportunities; some well-established companies are actually offering higher yields.
Here are three reliable dividend stocks with yields of 3% or greater that you could consider purchasing now.
Brookfield Infrastructure‘s (NYSE:BIPC)(NYSE:BIP) recent dividend yield stands at approximately 3.8%. As a global player in infrastructure, it holds a varied portfolio that encompasses utilities, transportation, energy, and data operations. A good chunk of its revenue is derived from stable cash flows that are based on long-term contracts or fee structures regulated by the government, which together account for about 85% of its funds from operations. This helps the company shield its earnings from inflation, allowing Brookfield to consistently enhance its cash flow, thereby supporting dividend payouts.
The firm plans on distributing 60% to 70% of its consistent cash flow in dividends, while reinvesting the rest into business enhancements. Presently, Brookfield has around $7.8 billion allocated to capital projects anticipated to wrap up within the next two to three years, mainly in the data sector, which includes approximately $6 billion directed toward investments in the United States.
Additionally, Brookfield Infrastructure is not shy about acquiring new enterprises. In just the past year, it has committed $1.5 billion to various deals, which include a U.S. refined products pipeline system, a comprehensive fiber network, and innovative fuel cell systems for data centers. These initiatives enable Brookfield to project cash flow increases upwards of 10% each year, leading to expected dividend hikes in the range of 5% to 9% annually. Since 2009, Brookfield has enjoyed a compound annual growth rate of 9% in its dividends.
Exxon Mobil ((NYSE:XOM)) boasts a dividend yield slightly above 3%. This oil and gas behemoth supports its dividends through a large, integrated global business network, which helps mitigate the impact of crude oil price volatility on profits. Exxon’s financial footing is notably robust.
This industry leader anticipates even greater profits ahead. By 2030, the company envisions an increase of $25 billion in revenue and a $35 billion rise in cash flow compared to 2024 figures, all while maintaining consistent prices and margins. Their strategy focuses on structural cost reductions as well as capital projects that promise high returns.
Exxon’s blueprint indicates it could amass around $145 billion in surplus cash over the next five years if oil prices average about $65 per barrel. This would empower the company to consistently enhance its dividends, allowing it to maintain its top position in the sector for 42 consecutive years.
Prologis ((NYSE: PLD)) currently offers a dividend yield of 3.2%. This real estate investment trust (REIT) enjoys stable cash flow from long-term leases for its properties, which often feature annual rent increase clauses that help secure steady income growth.
Prologis operates with a conservative payout ratio and boasts one of the most robust balance sheets in the industry, giving it the flexibility to pursue growth, both in developing projects and through acquisitions. While primarily focused on logistics facilities, the company also sees opportunities in leveraging its extensive land holdings, on-site solar panel installations, and data center construction expertise to foster further growth.
Brookfield Infrastructure, ExxonMobil, and Prologis not only provide dividends with yields exceeding 3% but are also robust financially, making them solid dividend stocks worth considering.
However, before making a decision to invest in ExxonMobil, it might be wise to explore other options as well. For instance, an analyst team has pinpointed various stocks that may outperform ExxonMobil in the near future.
